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RMAC lists bond on bourse

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SECC director-general Sou Socheat (centre left) and RMAC CEO Ngorn Saing (centre right) at the listing ceremony on Thursday. SECC

RMAC lists bond on bourse

Automotive, heavy equipment, engineering and food services conglomerate RMA (Cambodia) Plc (RMAC) on Thursday officially listed its first corporate bond on the Cambodia Securities Exchange (CSX).

Presiding over the listing ceremony, Securities and Exchange Commission of Cambodia (SECC) director-general Sou Socheat said capital markets have become a diversified source of funding for private companies who continue to struggle under the strain of the Covid-19 crisis.

“This time has truly been a quiet one for the stock market, but we are not done and we still have companies to list. The challenges and the circumstances have pushed many companies to suspended operations. I really appreciate RMAC for deciding to list today.

“RMAC’s presence is a new model of corporate bond listing from private companies on the capital market.

“The pandemic teaches us a good lesson on the diversification of funding sources, which is very important. If you rely on a single source of funding, you will face many challenges,” said Socheat.

RMAC CEO Ngorn Saing said the company has been operating businesses in Cambodia in various industries since 1992.

“RMAC’s expansion has contributed to the economic development of Cambodia. We have reached a new milestone as we transition from a private to a public company.

“I have been waiting for the listing for quite a long time. It doesn’t just bring a good image for RMAC but also promotes the development of the CSX. This could build trust for public investors and could provide momentum for national economic development,” said Saing.

He said RMAC’s turnover is around $300 million annually and it employs 654 staff.

CSX CEO Hong Sok Hour said RMAC raised around $20 million and is the first private company besides a bank or other financial institution to list corporate bonds on the market.

“The listing becomes a new long-term source of funding for the company to grow further and diversify its business.

“The listing will build more confidence among investors and also result in tax incentives from the government.

“I do hope that with the successful listing today, the company will consider issuing securities to allow investors in Cambodia the opportunity to join in the growth of the company,” said Sok Hour.

He said the CSX has listed 10 firms as of the end of last month, he said, five of which listed corporate bonds and five of which listed stocks, he said. The combined listed firms have raised about $190 million.

Market capitalisation reached $701 million last year, up 58 per cent from $442 million in 2018, he said. Trading volume increased nearly six-fold from $26,000 in 2018 to around $150,000 last year.

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