Logo of Phnom Penh Post newspaper Phnom Penh Post - Prasac lists corporate bond on CSX

Prasac lists corporate bond on CSX

Content image - Phnom Penh Post
Prasac issued 1,272,000 shares for the public offering with a total issue amount of 127.2 billion riel ($31.8 million). SECC

Prasac lists corporate bond on CSX

Despite the regional and global stock market slump caused by the Covid-19 pandemic, the Kingdom’s leading microfinance institution Prasac Microfinance Institution Ltd (Prasac) on Tuesday officially listed a corporate bond on the Cambodia Securities Exchange (CSX).

Prasac issued 1,272,000 shares for the public offering with a total issue amount of 127.2 billion riel ($31.8 million).

The coupon rate for the corporate bonds is 7.5 per cent per annum with a three-year maturity (semi-annual payment).

Speaking at the listing ceremony, Prasac president and CEO Sim Senacheert said his institution received listing approval from the Securities and Exchange Commission of Cambodia (SECC) on April 2.

The bond is fully guaranteed by the Credit Guarantee and Investment Facility, a trust fund from the Japanese-led Asian Development Bank.

Senacheert said: “The issuance of Prasac’s corporate bond on the Cambodia Securities Exchange will allow us to get a long-term source of funds and new sources of funds.

“I do believe that the issuance of the corporate bond will also contribute to support the government’s policy in promoting riel circulation and the development of the stock market in Cambodia as well as expanding financial inclusion more broadly in Cambodia,” he said.

CSX CEO Hong Sok Hour said Prasac became the sixth firm to list a corporate bond and the 11th to list overall. There are five stock and six bonds listed on the bourse, which have raised $223 million in trading.

“The funds raised from the stock market will become a new source of funds for Prasac. It is an effort of the institution in diversifying the sources of funds for business expansion. I do hope that Prasac will continue to raise more funds from the capital market,” he said.

SECC director-general Sou Socheat said the CSX will become a choice of funding for companies as it allows public investors to invest in them.

“Prasac collected about $32 million during this tough time – meaning that the investors trust the institution and the country’s economic development. The SECC recently issued a new regulation on corporate bonds for qualified investors,” he said.

As of the end of March, Senacheert said, Prasac had $3.28 billion in total assets and a loan portfolio of $2.72 billion with 421,374 borrowers.

It had a non-performing loan ratio 0.47 percentage points lower than market levels and a deposit balance of $1.81 billion with more than 616,372 accounts, he said.

MOST VIEWED

  • Public warned of dengue risks amid rainy season

    Minister of Health Mam Bun Heng has issued an eight-point plan to destroy mosquitoes carrying dengue fever amid the rainy season. In a four-page directive, Bun Heng warned that while the number of dengue cases has dropped sharply compared to last year, it could increase

  • Thirteen charged in UK migrant lorry tragedy

    Thirteen suspects arrested by French police over the deaths of 39 Vietnamese migrants in a refrigerated lorry in Britain have been charged with people trafficking, a judicial source said on Saturday. Six of the group – mainly Vietnamese and French nationals – were held on Tuesday in the

  • Cambodian Blue Helmet dies of virus

    The last rites for Cambodian Blue Helmet peacekeeper Sar Savy, who died on Friday at 63 from Covid-19 while on a mission in the Republic of Mali, will be held on Wednesday and Thursday at the UN base there. Cambodia’s National Centre for Peacekeeping Forces

  • World Bank donates $15 million in aid

    The World Bank on Friday approved $15 million for a medical training system to help Cambodia equip doctors with more skills before they start work. The budget, which was granted by the International Development Association (IDA), is intended to improve health care services. The World Bank

  • Ministry signs MoU to develop ICT training

    The Ministry of Education, Youth and Sport on Friday signed a Memorandum of Understanding (MoU) with IT Academy STEP Cambodia (STEP) to further develop the Sisters of Code project. The project trains female students in computer programming, and enhances information and communication technology (ICT) textbooks

  • Masseuse caught planting fake bills

    Four suspects were sent to Phnom Penh Municipal Court on Sunday for allegedly stealing money from a customer who had visited their massage parlour for a cupping session last Friday in Anlong Kgnan village, in Sen Sok district’s Khmuonh commune. District police chief Hour