Cambodian Securities Exchange and PRASAC executives celebrate the record listing at CSX headquarters. Supplied
PRASAC Microfinance Institution Plc has officially launched the largest ever corporate bonds listing on the Cambodian Stock Exchange (CSX) yesterday, raising 127.2 billion riel ($31.8 million) from just three investors – Malaysia’s Hong Leong Bank, Prudential Insurance and Shinhan Bank.
All bonds are fully guaranteed by the Asian Development Bank’s trust fund’s Credit Guarantee and Investment Facility (CGIF).The 1,272,000 bonds on offer were fully subscribed on April 22.
Sim Senacheert, president and CEO of PRASAC Microfinance Institution Plc, said that the issuance of PRASAC corporate bonds on the CSX will not only allow PRASAC to access long-term and new sources of capital, but also provide its full potential to establish itself as an institution with strong financial stability, financial transparency and full compliance with regulations.
“We believe that this issue will also support the Government’s policy to promote the use of the riel, the development of the securities market in Cambodia, and the wider financial inclusion in Cambodia,” said Senacheert.
“The proceeds from PRASAC’s Khmer riel bond issuance will support rural micro, small and medium enterprises (MSMEs) and also female entrepreneurs in the Kingdom of Cambodia,” he added.
At present, out of the total loan portfolio of $2.67 billion we have 13 percent in our Khmer riel loan portfolio of which around 80 percent is financed to women-owned MSMEs. So, the major part of the bond proceeds will be used to enhance the financing of female-owned MSMEs, according to PRASAC.
“The bond proceeds will also help to secure Khmer riel source of funds in advance and to finance local currency loans at a stable price, as well as helping to promote the use of Khmer riels following the National Bank of Cambodia’s efforts to promote wider usage of the currency,” PRASAC added.
Hong Sok Hour, CEO of CSX, said that the presence of PRASAC now on the CSX will mark another milestone for the local capital market as PRASAC is now the sixth listed corporate bond, and the third company to list on the CSX this year.
“I encourage PRASAC to consider listing its equity on the CSX to allow the public to join in with the successful institution,” Sok Hour said.
“In the first five months of this year we have already had three corporate bond listings, this shows the progress of the CSX, as we expect it will push other companies to take this pathway source funds, collect capital and expand their business,” Sok Hour added.
“We hope that [the CSX] is their choice to collect capital for their company and provide a market for investors. As this money can be used more efficiently and we believe is better than buying land does not generate activity for the economy,” he said.
The CSX currently has 11 companies, 5 equity firms and 6 corporate bond firms with total capital collected recorded at $223 million.
the development of the securities market in Cambodia, and the wider financial inclusion in Cambodia,” said Senacheert.
“The proceeds from PRASAC’s Khmer riel bond issuance will support rural micro, small and medium enterprises (MSMEs) and also female entrepreneurs in the Kingdom of Cambodia,” he added.
“At present, out of the total loan portfolio of $2.67 billion we have 13 percent in our Khmer riel loan portfolio of which around 80 percent is financed to women-owned MSMEs. So, the major part of the bond proceeds will be used to enhance the financing of female-owned MSMEs, according to PRASAC.
“The bond proceeds will also help to secure Khmer riel source of funds in advance and to finance local currency loans at a stable price, as well as helping to promote the use of Khmer riels following the National Bank of Cambodia’s efforts to promote wider usage of the currency,” PRASAC added.
Hong Sok Hour, CEO of the CSX, said that the presence of PRASAC now on the exchange will mark another milestone for the local capital market because PRASAC is now the sixth listed corporate bond,and the third company to list on the CSX this year. “I encourage PRASAC to consider listing its equity on the CSX to allow the public to join in with the successful institution,” Sok Hour said. “In the first five months of this year we have already had three corporate bond listings. This shows the progress of the CSX. We expect it will push other companies to take this path to source funds, collect capital and expand their businesses,” Sok Hour added.
“We hope that [the CSX] is their choice to collect capital for their company and provide a market for investors. This money can be used more efficiently and we believe is better than buying land does not generate activity for the economy,” he said.
The CSX currently has 11 companies, five equity firms and six corporate bond firms with total capital collected recorded at $223 million.