Logo of Phnom Penh Post newspaper Phnom Penh Post - Debt securities listing cleared for PPCBank and Acleda

Debt securities listing cleared for PPCBank and Acleda

Content image - Phnom Penh Post
A man drives by the Acleda Bank Plc headquarters on Phnom Penh’s Monivong Boulevard in 2017. Hong Menea

Debt securities listing cleared for PPCBank and Acleda

The Securities Exchange Commission of Cambodia (SECC) on Thursday confirmed that two of the Kingdom’s largest commercial banks would be approved and enjoy debt securities listing in the first quarter.

Its director-general Sou Socheat told The Post that Acleda Bank Plc (Acleda) was the first commercial bank to be approved, while the Phnom Penh Commercial Bank Plc (PPCBank) earned the distinction of becoming the first South Korean commercial bank to meet the benchmark.

He said the SECC would conduct an internal meeting to further review both applications before formally requesting approval from the Ministry of Economy and Finance later this year.

“We will process the Acleda and PPCBank applications at the same time. We will do our best to submit our request [to the ministry] as soon as possible,” he said.

The CSX had previously approved the equity securities listing eligibility and debt securities listing eligibility applications for both banks on December 24 last year, according to a CSX press release.

PPCBank president Shin Chang Moo told local media that the financial institution needed to have further meetings with the SECC, the CSX, and an underwriter before deciding the scale of their corporate bond offerings.

“We haven’t finalised the size of the bond issue since it is contingent on market demand for the bond subscription and further discussions with the SECC, CSX, and our lead manager, Yuanta Securities [underwriter].

“We are enthusiastic about PPCBank being approved by the National Bank of Cambodia [NBC] and CSX. [This] means our bank has passed the test in terms of internal control, financial and risk management for the issuance and listing of corporate bonds.

“The issuance process thus far has been smooth and successful. However, since we still need to go through one last step before being granted SECC approval, we will focus on the remaining benchmarks to ensure our goal is reached,” he said.

Chang Moo said PPCBank had decided to issue the bonds to adopt more efficient Asset Liability Management, diversify sources of funding to improve fund management and mitigate risks to liquidity.

Acleda received an official letter from the NBC on November 26, which allowed it to proceed with plans for an Initial Public Offering (IPO).

“Our shareholders have unanimously agreed that the bank should become public to diversify our sources of funding and utilise the Cambodian capital market for our future growth,” said Acleda president In Channy.

MOST VIEWED

  • Tourists urged not to skip trip

    The Ministry of Tourism has called on international tourists not to cancel trips to Cambodia, but urged them to adhere to several dos and don’ts when arriving in the Kingdom during the Covid-19 pandemic. The ministry released an eight-point instruction manual on Wednesday published

  • The taxman cometh – Cambodia’s capital gains tax casts the net on individual taxpayers

    In a country where only limited personal income tax existed, the new taxation law beginning January 1, 2021, will make taxpayers out of Cambodians, whether they are ready for it or not About two years ago, a little known amendment was made to Article 7 of the Law

  • Cambodian-American gets Star Trek treatment

    Kevin Ung, a Cambodian-American whose family escaped genocide during the Khmer Rouge’s reign of terror, was recently selected from thousands of applicants to participate in the Television Academy Foundation’s inaugural 2020 Star Trek Command Training Programme, a course intended to give hands-on filmmaking experience

  • Cambodia seeks to be transport hub

    Cambodia is working on several fronts to modernise its transport infrastructure and services, concentrating on opening new international gates to relieve and balance traffic congestion at its borders, Minister of Public Works and Transport Sun Chanthol said on Thursday. This is part of the Kingdom’

  • PM: West unfair to Cambodia

    Prime Minister Hun Sen released a message celebrating the International Day of Peace on Monday, saying that some major powers and western countries had been systemically cooperating to put political pressure on Cambodia as they did in the 1970s and 1980s. Hun Sen said pressuring

  • First ‘mobile kitchen’ in Cambodia enters service

    A catering company recently rolled out Cambodia’s first “mobile kitchen” – a $50,000 container capable of serving up to 200 people at a time. The kitchen is the brainchild of Seng Hok Heng Catering Services. At 4.4m-high, 6.8m-long and 2.4m-wide (expandable to 6.8m), the kitchen is equipped