ABA Bank takes step towards bond listing with CSX approval
The Cambodia Securities Exchange (CSX) granted its approval in principle on a bond listing eligibility review to Advance Bank of Asia Limited (ABA Bank), it said on Tuesday.
Following CSX approval, ABA Bank needs to be approved by the Securities and Exchange Commission of Cambodia to publicly issue corporate bonds.
ABA Bank, a National Bank of Canada Group member, will become the third bond issuer in the Kingdom’s capital market after it obtains approval from the National Bank of Cambodia.
The bank plans to raise 100 billion riel ($25 million) through its first corporate bonds, which will have a maturity date of three years with an annual coupon rate of seven to 7.5 per cent.
Net proceeds from the bond issuance will be used as operating expenditures and to grow the lending business, the bank said.
“The money will support rural micro, small and medium enterprises, including women entrepreneurs in Cambodia,” the press release said.
As of May 31, ABA Bank’s assets totalled $3.36 billion, making it the third largest bank in Cambodia.