Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s first corporate bonds in sight after approval from NBC

Kingdom’s first corporate bonds in sight after approval from NBC

Content image - Phnom Penh Post
A branch of Hattha Kaksekar Limited on Phnom Penh’s Street 271. Pha Lina

Kingdom’s first corporate bonds in sight after approval from NBC

Hattha Kaksekar Limited (HKL) is set to become the first company to issue corporate bonds in the Kingdom, and it is doing so to the tune of 80 billion riel ($20 million).

The firm has received approval from the National Bank of Cambodia (NBC) for the move.

HKL announced on Friday that the Cambodian microfinance firm plans to initially offer $20 million in bonds, and increase this by another $10 million if there is high demand.

The bonds will reach maturity in three years with a coupon rate from 7.5 to 8.5 per cent per year.

President and CEO of HKL, Hout Ieng Tong, said: “HKL is going to use the net proceeds [from the bonds] for funding growth of our lending business, working capital and general corporate purposes.

“The proceeds from HKL’s Khmer riel bond issuance will also support local micro-, small- and medium-sized enterprises,” he said.

After obtaining the NBC’s green light, HKL will submit documents to the Securities and Exchange Commission of Cambodia (SECC) for approval. Its approval forms for listing on the Cambodia Securities Exchange (CSX) are currently pending.

SBI Royal Securities is a financial adviser and underwriter for HKL’s bonds issuance project. The tentative subscription period for the bonds will be from September 26 to October 1.

In a statement in May, the International Finance Corporation (IFC), a World Bank Group subsidiary focusing on private-sector investment in developing countries, disclosed a proposal to invest up to $20 million in riel bonds issued by HKL.

In the statement, the IFC said it would leverage its global experience in local bond issuances to help HKL issue the first corporate bonds in the country.

Seng Chan Thoeun, managing director at SBI, told The Post that the bonds will give local investors more options, as up to now only stocks have been available on the CSX.

“Bonds can provide a stable source of low-cost funding. This is a very important step in furthering the development of the Cambodian capital market,” he said, adding that economic benefits will begin to stack up as more companies begin the process of issuing bonds.

HKL is the third largest microfinance deposit-taking institution (MDI) in the country in terms of assets, loan portfolio and net profit. It was ranked second in the Kingdom in terms of customer deposits as of the end of last year.

The company’s gross loan portfolio and customer deposits stood at $576.8 million and $367.4 million, respectively, as of December 31 last year.

At that time, their total assets stood at $69 million and net profit was up to $15.3 million.

MOST VIEWED

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro

  • ACLEDA, WU to enable global money transfers

    Cambodia's largest commercial bank by total assets ACLEDA Bank Plc and global money transfer firm Western Union (WU) have partnered to offer customers cross-border money transfers to 200 countries via “ACLEDA mobile” app. In Channy, president and group managing director of ACLEDA, said the June 22 agreement

  • Cambodia detects new Covid cases after 52 days: PM

    After 52 days of zero new Covid-19 cases, Cambodia has now detected new infections, according to Prime Minister Hun Sen. In his special audio address to the nation late on June 28, Hun Sen said the new cases were detected on people who had undergone PCR tests

  • Gold-covered boundary stone found within Angkor Thom’s West Gate

    The Apsara National Authority (ANA) announced that their working group in charge of restoration work at Angkor Thom's Takav Gate or the West Gate recently found an ancient stone slab commonly known as a boundary stone. The boundary stone is 53 cm by 53 cm and 12 cm

  • Higher education leaders tour US

    With support from the US Department of State, 10 Cambodian leaders in higher education participated in the 10-day International Visitors Leadership Programme (IVLP) in three US states from June 19 to July 1. They included nine university rectors and directors of higher education institutions who are members of