Royal Group Phnom Penh SEZ raises nearly $10 Million from Green Bond listing
Royal Group Phnom Penh SEZ raises nearly $10 Million from Green Bond listing
The Royal Group Phnom Penh SEZ Plc has raised $9.96 million in capital from its green bond listing at the Cambodia Securities Market (CSX) to build a wastewater treatment plant and its infrastructure.
The official bond listing ceremony was held on June 28 at the CSX building under the presidency of Hean Sahib, Secretary of State at the Ministry of Economy and Finance (MEF) and Chairman of CSX.
The bond is named “PPSP Green Bond,” which is a public-guaranteed bond by CGIF with a total offering amount of $9.96 million, a five-year maturity, and a coupon rate of SOFR+1.5 percent per annum.
UEMATSU HIROSHI, Chief Executive Officer of RGPP SEZ mentioned that raising capital through the CSX of both equities and debt securities allows the company to have a vital source of financing to expand its business operations in a green context and aims to serve the community with high demand.
“This issuance is also helping us to achieve our company goal of attracting potential investors to invest in the economic zone, and it is also the honor of Royal Group to get involved in the development of the securities market,” he said.
Sou Socheat, Director General of the Securities and Exchange Regulator of Cambodia (SERC), congratulated the listed company on achieving the listing of the green bond and the issuance and listing of shares twice in May 2016 and October 2018.
The issuance and listing of the green bonds have also received technical assistance, financial support and enhancement on investment support through the “Cambodia Sustainable Bond Accelerator (CSBA)” programme.
A collaboration between SERC, GGGI, UNESCAP, CGIF, and GuarantCo simplified the process and cost of issuance.
He added that as a result of these efforts, companies will be issued and listed consecutively.
“This indicates that the securities market is growing with the number of securities issuance and thematic bonds, including green bonds, social bonds, and sustainability bonds,” Sou Socheat underlined.
As of June 2024, there are 23 listed companies, including 11 companies listed as stocks and 12 listed as bonds, with a total fund raised of approximately $400 million.
