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.