The Foreign Trade Bank of Cambodia (FTB) and Tong Yang Securities (Cambodia) yesterday signed a memorandum of understanding on financial consultation services and trade co-operation that is hoped to expand banking and securities business in the country.

The MoU should bring the bank and the securities firm into close co-operation on financial advising in a market with an increasing demand for the services.

The bank has shown interest in a possible public listing, but no time frame was given.

The Cambodia Securites Exchange launched its first initial public offering on Wednesday, and two more companies are expected to launch this year.

Tong Yang underwrote the IPO for Phnom Penh Water Supply Authority, the country’s first domestically listed company.

Under the MoU, FTB  would grant Tong Yang Securities a first right of refusal to act as an exclusive financial adviser with respect to the initial public offering of FTB and any merger and acquisition deals.

“We are very impressed with Tong Yang Securities’ reputation and performance, and our congratulations for the enormous success of the first IPO in Cambodia of our common customer, the Phnom Penh Water Supply Authority,” FTB general manager Gui Anvanith said during the signing, adding that the two companies would complement each other.

You Joon Ryeol, general director of Tong Yang Securities, recognised the challenges of reforming the financial industry during a time when the West was suffering from a financial crisis.

Minh Bankosal, general director of the Cambodia Securities Exchange, said the memorandum of understanding was a building block in the Kingdom’s finance industry.

“It is better, because it will contribute to the development of the stock market in Cambodia,” he said.

To contact the reporter on this story: Sieam Bunthy at [email protected]