PPCBank officially listed its first corporate bonds on the Cambodia Securities Exchange (CSX) on Tuesday, April 21, 2020 after obtaining the approval of the Securities and Exchange of Commission of Cambodia (SECC)on its subscription and allocation results on April 10, 2020.
PPCBank successfully raised KHR 40 billion during the 1st phase of its bond issuance process amidst COVID-19 pandemic. The 1st phase investors have subscribed to FX-indexed bonds with an interest of 6.5% per annum anda maturity of 3 years. A total of 400,000 bonds were issued in 1st phase at a par value of KHR 100,000 per bond. The Bank plans to raise another KHR 40 billion in its 2nd phase in the next 6 months or so by carefully following the developments in regards to COVID-19.
Mr. Shin Chang Moo, President and CEO of PPCBank said that, “Listing our corporate bonds marks a new milestone for PPCBank. I would like to take this opportunity to express my sincere appreciation to the regulators, 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, we are now one of the few financial institutions in Cambodia with access to the newest source of long-term funding. Through the bond issuance, we were able to build new investment relationship with reputable foreign and local institutional investors. I believe this is the first time that a local insurance company invested a meaningful amount in corporate bonds issued by a financial institution as an anchor investor. We believe the listing of our bonds will contribute immensely to our bank’s reputation and brand as not only the leading commercial bank but also a trusted partner with customer-centric, innovative, and transparent business operations.”
He further added that “While still in the early stage of its development, the Cambodian capital market is expected to provide us with more flexibility and stability in terms of funding for the medium and long-term”.
Mr. Han Kyung Tae, the Managing Director of Yuanta Securities (Cambodia), the lead manager for PPCBank’s bond issuance project noted that, “In the middle of COVID-19 pandemic, we are happy to have successfully guided PPCBank to complete the 1st phase of its bond issuance. We believe this is an excellent start for the bank as securing liquidity will be one of the top priorities for banks for the coming months.
In line with governance’s initiative on public gatherings and movement, the listing event for the bonds was carried out at the CSX on April 21, 2020 with a limited number of participants.