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

  • Construction begins on $1.5B Kampot seaport

    The International Multi-Purpose Logistics and Port Centre, principally invested by Kampot Logistics and Port Co Ltd and projected to cost $1.5 billion, has officially broken ground in Bokor town, Kampot province. The multi-purpose logistics and port centre, located in Prek Tnaot commune, will be built on

  • Cambodia eyes key role in electronics, auto hubs in SEA

    Two roadmaps, part of the LDC’s economic diversification plan, were designed to see it through its migration process, but experts say the journey might be arduous, particularly in the presence of two established hubs in the region By 2028, Cambodia hopes to have exited the

  • Hun Neng, lawmaker and PM’s brother, passes away aged 72

    Hun Neng, chairman of the 4th Commission of the National Assembly, has passed away from heart disease at the age of 72 on the afternoon of May 5, according to the Ministry of Information. Hun Neng is the older brother of Prime Minister Hun Sen, and was

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM meets with US business giants

    Prime Minister Hun Sen has met with a number of major US companies who have expressed interest in investing in Cambodia, in a meeting convened by the US-ASEAN Business Council (US-ABC). A delegation of companies – including Amazon, Meta, Chevron, ConocoPhillips, ExxonMobil, Ford, Visa and Pernod

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180