Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia’s $3M maiden green bond gets CSX nod

Cambodia’s $3M maiden green bond gets CSX nod

Content image - Phnom Penh Post
The Cambodia Securities Exchange (CSX) could host its first green bond as early as November, according to the local bourse’s CEO. Hong Menea

Cambodia’s $3M maiden green bond gets CSX nod

Golden Tree Co Ltd has been given the in-principle nod by the Cambodia Securities Exchange (CSX) to issue an approximately $3 million “green bond”, which observers note is on track to become the Kingdom’s first, turning a page on a new era for the local bourse and catalysing a new private-sector movement to support government commitments to slash carbon emissions.

Having greenlit the Golden Tree’s Bond Listing Eligibility Review Application, the CSX explained in an October 5 statement that to issue the bond on the bourse, the company must be cleared by the Securities and Exchange Regulator of Cambodia (SERC) to issue the debt security, and meet other applicable conditions.

CSX CEO Hong Sok Hour told The Post on October 6 that the green bond is planned to carry a coupon rate of seven per cent and a tenor of five years. He explained that the issuance process of this class of debt security would be largely the same as that for regular bonds, but with climate and environmental considerations added to the eligibility criteria.

“Eco-friendly and climate-forward investments are becoming popular, and that’s why Golden Tree Co Ltd and a number of other companies are looking for accreditation from experts among independent parties, such as international institutions like the World Bank.

“I believe that these securities could be more special than previously-available ones, in that it will be open to individual investors as well,” he said.

SERC director-general Sou Socheat recapped that the CSX’s in-principle approval was based on an evaluation by a team at the Asian Development Bank (ADB) of the green bond’s compliance with ASEAN standards and other eligibility requirements.

He confirmed that, to move forward with the issuance process, Golden Tree would need to be sanctioned by the SERC, following a meeting of the Council of the Non-Bank Financial Services Authority (NBFSA) – the securities regulator’s parent agency.

According to Sok Hour, if the SERC assessment goes smoothly and quickly, the bond may be issued as soon as next month.

Incorporated in October 2006, Phnom Penh-based Golden Tree is a veteran player in the capital’s office rental market, and famously owns the 12-storey Grade B VTrust Tower on Street 169 across the street from Bak Touk High School in Prampi Makara district’s Veal Vong commune.


  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.