CamGSM launches Cambodia’s first sustainability bond on CSX

CamGSM launches Cambodia’s first sustainability bond on CSX

Cambodian operator CamGSM PLC successfully launched its US$20 million sustainability bond on the Cambodia Securities Exchange (CSX), making it the first such bond to be issued in Cambodia.

The CamGSM Sustainability Bond comes with a ten-year maturity and a coupon rate (SOFR) plus 3% or 5.5% per annum, whichever is higher.

Christopher Donald Tiffin, group COO of Royal Group, said the sustainability bond will “support projects aiming to alleviate climate change related risks with investment in renewable energy and provide connectivity to the underserved communities”.

Meanwhile, CamGSM (which trades under the brand CellCard) said it will use the US$20 million raised from the bond to enhance and upgrade its network and infrastructure.

The sustainability bond follows CamGSM’s IPO launch in June last year, which raised over US$5 million. The bond has been in the works since July 2023, when the board of directors authorizing the issuance of debt securities up to US$70 million. CamGSM received regulatory approvals for the sustainability bond from CSX and the Securities Exchange Regular of Cambodia (SERC) in September and October, respectively.

Royal Group Securities is the sole underwriter and financial advisor for the bond, while Moody’s is the SPO (second party opinion). Manulife and Prudential have fully subscribed to the bond backed by a 100% guarantee from GuarantCo, which is part of the Private Infrastructure Development Group.

Royal Group Securities CEO Seng Chanthoeun said the CamGSM Sustainability Bond is a good start in driving Cambodia’s securities market towards a more sustainable future. “By having the first-ever sustainability bond listed, we are optimistic that this milestone will lay the groundwork for more issuances of ESG bonds in the near future.”

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