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Cambodia, Thailand ink MoU to connect capital markets

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The Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat. Heng Chivoan

Cambodia, Thailand ink MoU to connect capital markets

The Securities and Exchange Commission of Cambodia (SECC) and Thailand’s Securities and Exchange Commission (SEC Thailand) on Tuesday signed a memorandum of understanding (MoU) to cooperate and exchange information on cross-border equity offerings and the issuing of depository receipts with SEC Thailand.

The aim of the MoU is to push for the successful implementation of cross-border offerings of securities that link both countries’ capital markets.

The deal is the result of a fruitful discussion between the two agencies early last month and is being seen as an important milestone to reflect strong bilateral ties as well as to further strengthen a previous MoU signed in 2014.

The latest MoU covers the establishment and setting up the functions of a task force to work on the process of implementing cross-border equity offerings and the issuing of debt receipts. It also covers guidelines for those who wish to offer securities both in Cambodia and Thailand.

SECC director-general Sou Socheat said: “The additional MoU signing marks a long friendship, market development and cooperation between SECC and SEC Thailand.

“This MoU will provide alternative ways for companies both in Cambodia and Thailand to have access to capital, help expand the issuers’ businesses, increase their liquidity derived from trading in more than one exchange and access to larger pool of potential investors,” said Socheat.

“In addition, we are sure this MoU’s implementation will lead to a good model for cooperation in the region and we are optimistic that capital markets in the region will grow together,” he said.

SEC Thailand secretary-general Ruenvadee Suwanmongkol said: “Cambodia and Thailand are well connected in economic, social and cultural terms.

“Both SEC Thailand and the SECC also have been enjoying a friendly, cooperative relationship both at bilateral and multilateral levels over the past several years.

“The MoU signed today [on Tuesday] marks a significant milestone in enhancing capital-market cooperation between the two regulators to make a strong contribution to the successful implementation of cross-border equity offering and debt receipts with the aim of allowing issuers from both countries to list or make an offer of their equity securities outside the issuer’s home jurisdiction.

“With this strong collaboration, it is expected that a corporation from Cambodia will become the first foreign company listed on the Stock Exchange of Thailand, after the SEC [Thailand] regulation on cross-border equity offering became effective in 2015.

Debt receipt is another financial instrument that has been received with great interest by businesses in both countries. Thus, we strongly believe this MoU will create greater business opportunities as well as sustainable growth and prosperity of the region,” she said.

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