Logo of Phnom Penh Post newspaper Phnom Penh Post - MFI to issue first corporate bond

MFI to issue first corporate bond

Content image - Phnom Penh Post
The Cambodia Securities Exchange is to list MFI Hattha Kaksekar Ltd as its sixth company. Hong Menea

MFI to issue first corporate bond

Cambodian microfinance institution (MFI) Hattha Kaksekar Ltd (HKL) yesterday kicked off a roadshow for its first ever corporate bond in the Kingdom.

Geared towards attracting prospective investors, it became the first company to issue corporate bonds in the Kingdom and plans to raise 120 billion riel ($30 million) to fund the growth of its lending business.

The company plans to issue 1.2 million in corporate bonds, worth 100,000 riel per unit.

The bond maturity is three years with a coupon rate from 7.5 to 8.5 per cent per year.

HKL president and CEO, Hout Ieng Tong, said during the event yesterday that the bonds issuance is expected to be successful despite the country’s lack of experience.

“When we started preparing [to issue the bond], many investors contacted HKL to invest in our bonds,” he said.

The issuance of HKL’s corporate bonds marks the creation of the local debt capital market.

‘More dynamic market’

Shuzo Shikata, CEO of SBI Royal Securities, the bond’s sole underwriter, said it created a new and sustainable funding source for companies, allowing them and the Cambodian economy to continue with impressive growth.

“This bonds also help create a more dynamic market where investors now have more tools and strategies to invest their money,” Shikata said.

The International Financial Corporation has already committed to investing up to 80 billion riel to help establish the Cambodian bond market, while Vattanac Bank will invest 20 billion riel in the bond.

Cambodia Commercial Bank and Cambodian Reinsurance Company (Cambodia Re) committed to invest an undisclosed amount.

Vattanac Bank general manager Chan Kok Choy said the company’s decision is an expression of support for the market.

“We are also impressed by HKL’s financial performance, good track record, management, shareholders and prospects,” he said.

The company will enter the subscription phase from October 24 to October 31, while listing on the Cambodia Securities Exchange (CSX) is scheduled for November 1.

Investors have to place at least $500,000 in the bond in the primary market and add $100,000 to each incremental investment if they wish to buy more.

HKL will become the sixth company to be listed on the CSX.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the