CSX welcome surge in issuance of new green bonds
CSX welcome surge in issuance of new green bonds
The Cambodia Securities Exchange (CSX) is experiencing a surge in interest for green bond listings, with firms from the education sector and telecoms giant CamGSM at the forefront.
Hong Sokhour, CEO of CSX, told The Post on October 23 that there are plans for another education sector company to issue green bonds shortly. This will be the second educational institution to do so, following Mengly J Quach Education Plc (MJQE).
He said that while mobile network operator CamGSM (Cellcard) is set to list its green bond after receiving approval in principle, a fresh application from another firm is under review.
“[CamGSM] is in collaboration with the Securities and Exchange Commission of Cambodia [SECC], while our team has been assessing the new education sector application for almost two months. We anticipate reaching a decision soon,” he noted, without disclosing the company’s name.
He believes this trend is positive, suggesting listed firms can issue green bonds quicker, boosting investor confidence.
Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), told The Post earlier this month that following CSX’s approval, CamGSM’s application is under evaluation by his technical team.
“Our aim is to meet the company’s listing expectations. Nonetheless, every detail must pass our institution’s scrutiny,” he said.
He also noted that in the upcoming weeks, the SERC will liaise with the Non-Financial Service Authority (NFSA) for financial verification and approval.
“Once we receive the nod from the NFSA, we’ll commence the subscription phase leading to the CSX listing. CamGSM has made notable strides, but announcements will be reserved until approval is formalised,” he added.
In March, the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), the Global Green Growth Institute and SERC, in collaboration with the Credit Guarantee and Investment Facility (CGIF) – a component of the Private Infrastructure Development Group (PIDG) – launched the Cambodia Sustainable Bond Accelerator.
The initiative selected three private sector bond issuers: Golden Tree, Amret Plc and the Royal Group Phnom Penh Special Economic Zone (PPSEZ). These companies are set to receive support for green and sustainability bond issuances this year.
Amret is gearing up to issue a $50 million sustainability bond, Golden Tree is preparing for its second green bond with a target of $25 million for eco-friendly building ventures and the PPSEZ aims for a $20 million sustainability bond, according to the UNESCAP.
