PPCBank, one of the leading commercial banks in Cambodia, obtained an approval on the subscription and allocation results of its corporate bonds from the Securities and Exchange Commission of Cambodia (SECC) on April 10, 2020.
Considering the developments in regards to COVID-19, PPCBank decided to issue a total of KHR 80 billion worth of bonds in 2 phases: during the 1stphase, PPCBank raised KHR 40 billion and the remaining KHR 40 billion will be raised during the 2nd phase over the next six months or so. The bonds will have a tenor of 3 years, and the final coupon rate of the bonds will be 6.5% per annum.
In response to the successful endeavor, Mr. Shin Chang Moo, CEO of PPCBank stated,“We are delighted with the successful completion of the subscription process for our 1st public bonds on the CSX. I would like to express my sincere appreciation to the regulators (NBC, SECC, CSX), investors, and advisors that have made the issuance of our 1st public bonds possible. At a time of high uncertainty and market volatility where securing liquidity is more important than ever, PPCBank is now one of the few financial institutions in Cambodia with access to the newest source of long-term funding. Issuance of corporate bonds on the CSX is expected to add not only flexibility but also stability in terms of funding for the medium and long-term.”
Around the world, financial institutions have been forced to respond quickly to the situation, and PPCBank has managed to successfully move the project forward. KT Han, Managing Director Yuanta Securities, and the Lead Manager for PPCBank’s bond issuance said, “Despite unexpected developments throughout the bond issuance process, such as the global outbreak of COVID-19 pandemic and the announcement of the new Prakas on the tax incentives available for the listed companies, PPCBank showed strong commitment to fulfilling its promise with the investors and gaining the trust of the regulators that have already approved our project. We are happy to have guided PPCBank complete the first phase of the bond issuance. We believe it is an excellent start for the Bank as securing liquidity will be one of the top priorities for banks for the coming months. We plan to carry out the 2nd phase by carefully following the developments in regards to COVID-19.”
The listing date for the bonds is expected to be on April 21, 2020. In support of the government’s guidance and instructions on public gatherings and movement, PPCBank will host a listing event on the 21st with a limited number of participants.