Logo of Phnom Penh Post newspaper Phnom Penh Post - PPCBank second bond round to help SMEs

PPCBank second bond round to help SMEs

PPCBank second bond round to help SMEs

South Korea-owned PPCBank President and CEO Shin Chang-moo said on Thursday the 40 billion Riel ($10 million) raised from the bank’s second bond offering will be used to expand loans to small and medium-sized enterprises.

Speaking at a press conference, Shin said the bond issuance on the Cambodia Securities Exchange (CSX) will be used to provide better-designed products to boost business revenue.

“The raised fund will be used to continue to support SMEs as they are the ones most impacted by the [coronavirus].

“As of today, we have established two SME centres strategically located in Phnom Penh where dedicated staff provide in-depth consultation to SME owners in need of loans. We have designed products with favourable conditions for SMEs and will provide information and assistance on how to diversify payment,” he said.

Shin said PPCBank has also been participating in an SME co-financing scheme launched by the government.

“Last week, we got approval from SME Bank to double their limit. Such participation in the co-financing scheme doesn’t add huge profits, but in difficult times it is more important financial institutions support the most vulnerable in the market,” Shin said.

The Ministry of Economy and Finance announced on April 3 the launch of the “SME co-financing” project with funding of $100 million. The project is a joint venture between SME Bank of Cambodia and 23 commercial banks, two specialised banks, seven microfinance institutions (MFIs).

Securities and Exchange Commission of Cambodia (SECC) deputy director-general Seang Thirith said six companies have been listed on the bond market since October. PPC is the only one to issue bonds twice.

“PPCBank is contributing to the growth of country’s economy by raising funds in the domestic market to use in their business operations,” he said.

CSX Chairman Jong Weon Ha, said there are a total of 13 securities-listed companies -- seven stock and six bonds. The total amount raised is $253 million.

“CSX expects the market to become a potential and credible option for raising capital, diversifying fund sources and supporting the growth of the private sector and investment portfolios of investors,” he said.

MOST VIEWED

  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • International air visitor arrivals dip 93%

    The number of foreign tourists entering Cambodia through the Kingdom’s three international airports witnessed a sharp 92.5 per cent year-on-year decline in the first seven months of this year, according to the Ministry of Tourism. The airports handled 51,729 international tourists in the January-July period versus

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision

  • Covid jab drive for 6-11 age group to begin Sept 17

    Prime Minister Hun Sen has permitted Covid-19 vaccinations for over 1.8 million children aged 6-11 across the country from September 17 in order for them to return to school after a long hiatus. Hun Sen also hinted that vaccinations for the 3-6 age group will follow in

  • Is Cambodia’s microfinance sector running its course?

    Economic growth and the strength of the banking system might have prompted a slow decline of the microfinance segment that has been raising a population ‘The MFI business model is over,” opined David Van, a Cambodian investment expert, recently. He felt that in a couple