Economy: Royal Group Phnom Penh SEZ secures nearly US$10 Million from green bond listing

The Royal Group Phnom Penh SEZ Plc has successfully raised US$9.96 million in capital from its green bond listing at the Cambodia Securities Market (CSX) for the construction of a wastewater treatment plant and related infrastructure.

Mr. UEMATSU HIROSHI, Chief Executive Officer of RGPP SEZ

The official bond listing ceremony was held on 28 June at the CSX building, presided over by H.E. Dr. Hean Sahib, Secretary of State at the Ministry of Economy and Finance (MEF) and Chairman of CSX.

The bond is named the "PPSP Green Bond," a public guaranteed bond by CGIF with a total offering amount of US$9.96 million for a five-year maturity and a coupon rate of SOFR+1.5% per annum.

Mr. UEMATSU HIROSHI, Chief Executive Officer of RGPP SEZ, stated that the company's ability to raise capital through the CSX of both equities and debt securities provides a robust source of financing to expand its business operations in a green context and enables it to serve the community with high demand.

"This issuance is helping us to achieve our company goal of attracting potential investors to invest in the economic zone. It is also an honour for Royal Group to be involved in the development of the securities market," he said.

H.E. 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, in addition to the issuance and listing of shares twice in May 2016 and October 2018.

H.E. Dr. Hean Sahib, Secretary of State at the Ministry of Economy and Finance (MEF) and Chairman of CSX

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 has simplified the process and reduced the cost of issuance.