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

  • Some jobs off limits to foreigners from August

    Beginning from the second week of August, foreigners will be banned from driving taxis and tuk-tuks, as well as being motorcycle delivery drivers, street food vendors, hairdressers and product distributors among other lower-income jobs. Some white-collar jobs such as the head of human resources will

  • Chinese-owned shops are on the rise in central Phnom Penh

    Informal businesses owned by Chinese nationals are on the rise in central Phnom Penh, especially in Tonle Bassac commune, surrounding Koh Pich. Such businesses have sprung up notably in Central Market, Orussey Market, Sovanna Shopping Mall, Rattana Plaza, as well as Kakab commune across from

  • Sihanoukville authorities find 83 rubbish-packed containers

    Eighty-three containers packed with rubbish were broken open at the Sihanoukville Autonomous Port by joint authorities on Tuesday. The origin of the containers has yet to be ascertained, Ministry of Environment spokesman Neth Pheaktra said. Pheaktra, who is also the ministry’s secretary of state,

  • ‘Cambodia Democracy Act’ passed by US House

    The US House of Representatives in Washington, DC, on Monday, passed the “HR 526 Cambodia Democracy Act”, also known as the Cambodia Democracy Act of 2019. If signed off by th US president, the bill would allow two major sets of action to be taken against high-ranking