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.