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SECC approves bond issuance

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A teller at a branch of Prasac Microfinance Institution Ltd counts $100 bills. The institution has received initial permission to issue bonds on CSX. Hong Menea

SECC approves bond issuance

Phnom Penh Commercial Bank (PPCBank) and Prasac Microfinance Institution Ltd (Prasac) have been granted initial permission to issue bonds on the Cambodia Securities Exchange (CSX).

The Securities and Exchange Commission of Cambodia (SECC) approved their applications for bond issuance on Monday during a meeting chaired by Minister of Economy and Finance Aun Pornmoniroth.

Prasac vice-president Say Sony told The Post his institution started the application process last year.

“Work on this began in 2019, but we have experienced some delays.

“Our plan is to raise funds in the local currency, the Cambodian riel. We aim to raise 280 billion riel, about $70 million, to support our lending activities in the local currency,” Sony said.

He said he expects the application will receive final approval next month. “Some investors have already announced their decision to invest in our bonds. Others are still considering it.

“We are attracting a lot of investors because of our good economic performance and the 100 per cent bond back guarantee from the Credit Guarantee and Investment Facility,” Sony said.

CSX vice-chairman and CEO Ha Jong-weon said the presence of the two financial institutions will raise the profile of the Cambodian capital market and create more options for investors.

“PPCBank will be the second commercial bank to issue corporate bonds on the CSX. Prasac’s and PPCBank’s issuances will create more investment options and contribute to the growth of the local bourse.

“Prasac has already submitted their application for listing eligibility review to the CSX, and we are still working with them.

“Of course, CSX wants to have lots of securities-listed companies – both equity-listed companies and bond-listed companies,” Ha said.

Last year, market capitalisation at the CSX increased 157 per cent to $800.39 million.

By the end of last year, it had attracted 22,446 investors, raising nearly $151 million for all five companies listed on its main board and the three companies that have issued bonds, said an SECC report issued last week.

On average, about 1.7 million shares are traded each month, amounting to $4.2 million, SECC data shows.

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