Logo of Phnom Penh Post newspaper Phnom Penh Post - LOLC Cambodia set to issue corporate bonds by late April

LOLC Cambodia set to issue corporate bonds by late April

Content image - Phnom Penh Post
LOLC (Cambodia) Plc hold the grand opening ceremony of a branch on Monivong Boulevard in the capital’s Boeung Prolit commune on December 24. LOLC CAMBODIA

LOLC Cambodia set to issue corporate bonds by late April

LOLC (Cambodia) Plc is set to issue corporate bonds late next month, one month later than initially planned, as the firm’s proposal has only been granted two of three required approvals.

After obtaining a no-objection letter from the National Bank of Cambodia last month, LOLC then submitted the Listing Eligibility Review Application to the Cambodia Securities Exchange (CSX).

On Thursday, the project was awarded approval from CSX, but the firm needs a third approval from the Securities and Exchange Commission of Cambodia (SECC) before it can begin issuing corporate bonds.

Yuanta Securities research head Sim Dara, the adviser and underwriter for the LOLC bond, on Sunday said the required processes are nearly complete and SECC approval is expected early next month, soon followed by the issuing of bonds.

“We already have enough potential investors to buy LOLC’s bond. Most of them are institutional investors in the country,” he said.

LOLC will become the second bond issuer in Cambodia after Hattha Kaksekar Limited (HKL). Unlike the first corporate bonds, LOLC’s offer investors not only fixed-coupon bonds but also those indexed to foreign exchange rates, with an interest rate that varies according to foreign currency exchange rates.

LOLC plans to raise 80 billion riel ($20 million) through the issuance of its first corporate bonds. The bonds will have a maturity date of three years.

HKL bond was officially listed on CSX in December. During its subscription period, 1.2 million corporate bonds were purchased by institutional investors at 100,000 riel each, with an annual coupon rate of 8.5 per cent and a three-year maturity.

The company raised $30 million from the issue.

MOST VIEWED

  • Phnom Penh unveils rules for post-lockdown transition

    The Phnom Penh Municipal Administration issued a set of detailed guidelines for the seven days to May 12 after the capital emerges from lockdown at the onset of May 6. In the 14-page document signed by municipal governor Khuong Sreng released on the evening of May 5, the

  • SBI LY HOUR Bank Launches Cross Border Money Transfer Service between Cambodia and Vietnam on RippleNet, utilizing DLT

    SBI LY HOUR Bank Plc and Hanoi-based Tien Phong Commercial Joint Stock Bank (TPBank) on Friday launched the first Cambodia-Vietnam money transfer service in real currency via RippleNet, provided by SBI Ripple Asia Co Ltd to provide safe, fast and convenient services. SBI LY HOUR

  • Gov’t issues guidelines as lockdown nears end

    The government has issued a five-page set of instructions to be enforced when the three-week lockdown of Phnom Penh and adjacent Takmao town in Kandal province ends on May 6. According to an announcement signed by Prime Minister Hun Sen on May 4, the instructions cover a

  • Cambodia ready to exit LDC status

    Cambodia is well-prepared to minimise economic risks when it graduates from its Least Developed Countries status, according to a senior official at the Ministry of Commerce on May 7. Four LDCs – Cambodia, Laos, Bangladesh and Nepal – met at a virtual workshop last week to explore potential

  • Nine US franchises eye Cambodia debut

    Nine famous US franchising companies are looking for business opportunities and expansion into Cambodia to build a footstep for a strong foundation in Southeast Asia. The US embassy in Phnom Penh, in partnership with the US Foreign Commercial Service and with support from the American

  • Nearly 2,000 detained for Phnom Penh curfew breach

    Nearly 2,000 people were detained in the capital for violating the curfew imposed by the government and Phnom Penh Municipal Administration. Municipal police spokesman San Sokseyha told The Post on May 16 that people were detained in two phases. In phase one, the government locked down Phnom