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.


  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of

  • School reopening can’t wait

    With the Covid-19 pandemic now well into its second year, safely reopening schools has become an urgent priority. School attendance is critical for children’s education and lifetime prospects. The long-term costs of closures – both for individual children and society – are simply too large to