Logo of Phnom Penh Post newspaper Phnom Penh Post - Acleda Bank ‘green bond’ CSX offering gets NBC nod

Acleda Bank ‘green bond’ CSX offering gets NBC nod

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ACLEDA Bank facility on the Monivong Bvld. Hong Menea

Acleda Bank ‘green bond’ CSX offering gets NBC nod

The Kingdom’s stock exchange boss on December 5 provided a statement welcoming ACLEDA Bank Plc’s plans to issue a “green bond” to finance its green, eco-friendly business pursuits.

The National Bank of Cambodia (NBC) on November 21 okayed ACLEDA Bank’s green bond, which would be its second offering on the Cambodia Securities Exchange (CSX) after going public in May 2020, raising 70.387 billion riel – reported as $17.5 million then – from its initial public offering (IPO).

After ACLEDA works with green bond’s underwriter on the specifics, the debt security will then have to receive the nod from the CSX and Non-Bank Financial Services Authority (NBFSA) before moving on to the final set of formal issuance procedures.

Another green bond, due to be issued by Golden Tree Co Ltd (GT), is still in its final stages, having received in-principle approval from the NBFSA on October 12.

According to CSX CEO Hong Sok Hour, GT’s approximately $3 million green bond is planned to carry a coupon rate of seven per cent and a tenor of five years.

Speaking to The Post on December 5, Sok Hour expressed keenness for additional security issuances from CSX-listed firms.

“We always encourage companies that have already listed stocks or bonds to consider issuing more, whether it’s the same type of security as that already issued or another. They could have a total of two or three listed on the exchange, depending on their needs,” he said.

Although the issuing procedures have remained more or less the same over the years, companies looking to offer additional securities will be armed with previous experience and knowledge and may be able to complete the process faster, he added.

Sok Hour affirmed that, to date, he had not received an issuance application from ACLEDA for the green bond.

ACLEDA senior executive vice-president Mar Amara told The Post on December 5 that her bank is working with an underwriter, which she declined to name, to determine the issuance size and par value of the bond, the latter of which she suggested may be 100,000 riel – the same as every corporate bond currently on the CSX.

Of note, SBI Royal Securities Plc and Yuanta Securities (Cambodia) Plc have been the underwriters for every corporate bond listed on the local bourse.

Amara added that the bonds will be issued to diversify ACLEDA’s financing sources, and that proceeds would be used to promote green and environmental-friendly causes.

When asked for an expected issuance date, she declined to provide a more specific answer than: “We expect to issue in 2023.”

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