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.