CSX chairman Hean Sahib addresses the February 24 launch ceremony of the new bonds. Hin Pisei
Acleda Bank has officially announced the issuance of subordinated bonds through the Cambodia Securities Exchange (CSX). The bank expects to raise approximately $86 million in capital, which will be used to expand its business, strengthen operations and increase customer confidence.
The “Official Subordinated Bond Listing Ceremony” took place on the morning of February 24, at the CSX headquarters.
In attendance were CSX chairman Hean Sahib, Hong Sok Hour, Royal Government Delegate in Charge as CEO of the CSX, and Sou Socheat, director general of the Securities and Exchange Regulator of Cambodia (SERC), as well as other high-level representatives from the public and private sectors.
In Channy, president and group managing director of Acleda Bank, explained that subordinated bonds are a common financial tool used by banks worldwide, to contribute to the strengthening and expansion of the bank’s business potential and increase customer trust and public confidence.
“I believe that the issuance of these bonds will provide investors and customers with an additional investment option with Acleda Bank. In addition, this issuance makes a crucial contribution to promoting the growth and expansion of the capital market in Cambodia and a new mechanism for collecting domestic capital funds to support customers and contribute to the development of the national economy and society,” he said.
According to Acleda Bank, the first tranche subscription on January 22 by qualified investors raised the amount of 343.350 billion riel, the equivalent of $85.8 million, suggesting investor confidence exceeded expectations.
Sahib noted that debt securities play a crucial role in Cambodia's financial sector, maintaining stability, promoting economic growth with productivity and sustainability, reducing dependency on foreign loans and enhancing government financial resources for the development projects needed to drive long-term economic growth.
SERC director general Socheat highlighted how by issuing the bonds, Acleda Bank has actively contributed to the strengthening of the Cambodian securities market.
This shows that Cambodia's capital market is developing with notable growth in the issuance of both corporate bonds and debt securities, including green and sustainable bonds, he added.
Sok Hour, CEO of CSX, explained that the bonds raised approximately $86 million, as a seven-year loan with an 8.5% annual coupon rate.
As of today, 24 companies are listed on the CSX. This includes 11 companies that have issued corporate bonds and 13 companies that have listed business bonds, raising a total of approximately $475 million.
Hour noted that the issuance by Acleda Bank demonstrates the progress of Cambodia's capital market, which is advancing well, even though the trading volume and number of traders are still relatively small compared to some other countries.
According to an Acleda Bank press release, as of December 2024, the bank's total assets amounted to over $10.83 billion, total customer deposits of $8.36 billion and over 5.52 million customers.
