Investors will have more options in Cambodia’s securities market as Hattha Kaksekar Limited’s (HKL) first-ever corporate bond was officially listed on the Cambodia Securities Exchange (CSX) on Wednesday.
Chea Serey, director-general at the Central Banking Directorate, National Bank of Cambodia, said the listing underscores the start of the bond capital market in Cambodia, which is a key part of the financial market.
Currently, there are more investment instruments for investors, financial institutions and entrepreneurs.
“It enables them to choose a new type of investment, which is a fixed-income tool to meet their investment strategy and with an acceptable risk limit,” Serey said.
HKL President and CEO Hout Ieng Tong said on Wednesday during the CSX listing ceremony that the listing is a success and that he is proud of his company’s contribution to the development of the Kingdom’s securities market.
“From the date of this listing, investors can buy [HKL] corporate bonds in Cambodia’s securities market if investors holding the bonds decide to put them on sale,” he said.
Listed on the secondary market
HKL’s corporate bond, which has the bond symbol “HKL21A”, is traded on CSX’s secondary market after the listing.
Investors can place orders to sell or buy through any securities company in a process similar to stock trading. Prices of the bonds may fluctuate based on market supply and demand.
At the subscription, 1.2 million corporate bonds were purchased by institutional investors at 100,000 riel ($25) each, an annual coupon rate of 8.5 per cent and three years maturity.
The company raised $30 million from the issue.
CSX CEO Hong Sok Hour said bondholders can hold them till the maturity date to receive interest or they can sell them in the secondary market if offered at a high price.
“I expect some holders may sell the bonds when there is a market demand, which will lead to market activity,” he said.