Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX’s inaugural ‘green bond’ raises $1.46M

CSX’s inaugural ‘green bond’ raises $1.46M

Content image - Phnom Penh Post
GT chairman Kuy Vat (left) and finance ministry secretary of state Hean Sahip at the listing ceremony on January 19. CSX

CSX’s inaugural ‘green bond’ raises $1.46M

Golden Tree Co Ltd (GT) on January 19 listed the first “green bond” on the Cambodia Securities Exchange (CSX), raising 6.0721 billion riel ($1.46 million) to expand its business, in what has been hailed as a milestone in the development of the local bourse.

A total of 60,721 units were issued at par value of 100,000 riel, carrying a per-annum coupon rate of seven per cent paid semi-annually and a five-year tenor with maturity date of December 6, 2027, according to the CSX website, which noted that the bond was underwritten by SBI Royal Securities Plc, with Cambodia Securities Plc as co-underwriter.

Speaking at the listing ceremony held at the CSX office, GT executive vice-president Oum Sereyrotanak assured that the Asian Development Bank (ADB) had provided technical assistance to ensure that the offering conforms to ASEAN green bond standards.

He said the bond dovetails with GT’s long-term strategic vision of becoming a leading real estate company in Cambodia.

“This issuance is a step towards giving our investors another level of understanding of sustainable investment, where they can be profitable and protect the environment at the same time.

“The issuance of the green bond not only allows Golden Tree to obtain capital for business expansions, but also to gain the trust of local and international investors in the company’s business. In addition, the company will also do its part to boost the potential and sustainability of the financial sector,” Sereyrotanak said.

Also at the ceremony, CSX CEO Hong Sok Hour hailed the bond as the beginning of a “green wave”, which he said is indicative of the securities sector’s “active involvement” in the support and broad promotion of eco-friendly management.

“In light of this novel green achievement, I’d like to encourage business owners to consider capital diversification through the CSX, particularly by raising funds through the issuance and listing of three types of corporate bonds – green, social and sustainability – that attract public investors as well as institutional investors, and support the environment, society and the national economy,” he said.

At the same event, Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat voiced admiration for GT over “its willingness to issue the first green bond in the country, despite the obstacles during the issuance period – the company saw things through”.

Presiding over the event, Ministry of Economy and Finance secretary of state Hean Sahip lauded the green bond as “a new step in the development of the Cambodian securities sector”.

“I hope the chairman [Kuy Vat] will have his other affiliate companies issue green bonds or IPOs [initial public offerings]. Actually, Golden Tree has raised capital [through the bond] to develop green housing to meet consumer demand and expand the company’s business potential,” he said.

Vat, a veteran real estate professional, heads VTrust Group Co Ltd and a multitude of other local businesses.

The CSX’s Sok Hour commented that, as of January 19, a total of 18 companies feature on the local bourse – nine have listed shares, while the rest have issued bonds – raising a total of $317 million through their offerings.

To date, around 36,000 CSX trading accounts have been opened, he said, adding that the average daily trading value on the bourse reached about $500,000 last year.

The CSX is co-owned by the finance ministry and the Korea Exchange (KRX) on a 55:45 basis.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,