Logo of Phnom Penh Post newspaper Phnom Penh Post - PPCBank splits bond issuance, listing on April 21

PPCBank splits bond issuance, listing on April 21

Content image - Phnom Penh Post
The PPCBank headquarters in Phnom Penh.

PPCBank splits bond issuance, listing on April 21

South Korean-owned Phnom Penh Commercial Bank (PPCBank) has decided to split the issuance of its 80 billion riel corporate bonds ($19.7 million) into two phases due to the Covid-19 development.

The listing of the bonds on Cambodia Securities Exchange will take place on April 21, said the bank in a statement after obtaining the approval on the subscription and allocation of its corporate bonds from the Securities and Exchange Commission of Cambodia (SECC) today.

The second phase of the bond would be issued over the next six months or so.

The bonds, which have a three-year tenure and a final coupon rate of 6.5 per cent, joins Advanced Bank of Asia Ltd (ABA) on the CSX board as the second commercial bank corporate bond issuer.

Bonds have also been issued by microfinance institutions Hattha Kaksekar Ltd and LOLC (Cambodia) Plc.

“At a time of high uncertainty and market volatility where securing liquidity is more important than ever, we are now one of the few financial institutions in Cambodia with access to the newest source of long-term funding,” said PPCBank chief executive officer Shin Chang Moo.

The issuance of the bonds, initially scheduled for earlier this year and pushed to now, would add not only flexibility but also stability in terms of funding for the medium and long term.

Yuanta Securities (Cambodia) Plc managing director KT Han said the bank showed strong commitment to fulfilling its promise with investors and gaining the regulator, SECC’s trust despite the unexpected developments throughout the process.

“[This includes] the global outbreak of Covid-19 and the announcement of the new prakas on tax incentives for listed companies,” Han added.

Yuanta Securities is the lead manager for the bond issuance.

“We believe it is an excellent start for the bank as securing liquidity would be one of the top priorities for banks in the coming months.

“We plan to carry out the second phase by carefully following the Covid-19 development,” Han said.

The bank will hold the listing event with limited number of participants, in line with the government’s instructions on Covid-19.

MOST VIEWED

  • 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

  • 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 takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the