Logo of Phnom Penh Post newspaper Phnom Penh Post - Three firms join green-bond support plan

Three firms join green-bond support plan

SERC director-general Sou Socheat (centre) and other attendees at a signing ceremony for a memorandum of agreement between the SERC, ESCAP and GGGI in February. SERC
SERC director-general Sou Socheat (centre) and other attendees at a signing ceremony for a memorandum of agreement between the SERC, ESCAP and GGGI in February. SERC

Three firms join green-bond support plan

Three local firms have been chosen to receive assistance from the Cambodia Sustainable Bond Accelerator programme to pursue their goals of raising a total of roughly $95 million through the sale of green or sustainability bonds, according to a UN Economic and Social Commission for Asia and the Pacific (ESCAP) statement issued on June 26.

The Securities and Exchange Regulator of Cambodia (SERC), ESCAP and South Korea’s Global Green Growth Institute (GGGI) had launched the support programme in March, in collaboration with Asian Development Bank (ADB) trust fund Credit Guarantee and Investment Facility (CGIF) and Mauritius-based GuarantCo Ltd, part of the London-headquartered Private Infrastructure Development Group (PIDG), the statement noted.

Two of the companies are microfinance deposit-taking institution (MDI) Amret Plc and public-listed industrial park operator Royal Group Phnom Penh SEZ (PPSP), which aim to issue $50 million and $20 million sustainability bonds, respectively.

Real estate firm Golden Tree Co Ltd, meanwhile, is looking to offer its second green bond, to the tune of $25 million “for green building development”, the statement said.

“Collectively, CGIF, ESCAP, GGGI and GuarantCo will provide technical assistance and support to prospective issuers, including support in the development of bond frameworks, meeting best practices, facilitating post-issuance reporting and providing co-financing options to decrease bond issuance costs and investment support,” it added.

UN undersecretary-general and ESCAP executive secretary Armida Salsiah Alisjahbana hailed the programme’s launch as “a significant milestone in our collective efforts to promote green and sustainable finance in the Asia-Pacific region”, according to the statement.

“By addressing the barriers faced by bond issuers in developing markets and enhancing their awareness and capacities, we aim to unlock the potential of thematic bonds to contribute to the transition to a more sustainable and resilient future,” she was quoted as saying.

GGGI director-general Frank Rijsberman likewise described the accomplishments of the Sustainable Bond Accelerator programme in Cambodia thus far as “significant milestones”.

“The sustainable bond size of three potential issuers collectively is around $95 million, which is close to 50 per cent of the current plain bond listed in Cambodia.

“GGGI remains committed to supporting private sector issuers in identifying green projects, sustainable bond framework development and providing credit enhancement opportunities to promote sustainable financing in Cambodia,” he was quoted as saying.

The statement noted that although climate mitigation and adaptation have been given high priority by the government in its national development strategy, there is still a “substantial” amount of financing required to accomplish these and associated objectives.

“In Cambodia’s latest nationally determined contribution (NDC), the government of Cambodia declared that its climate mitigation and adaptation plans would require total funding of roughly $7.8 billion. Thematic bonds have the potential to close this financing gap by mobilising investment for the public and private sector for green and sustainability initiatives,” it added.

SERC director-general Sou Socheat said the securities regulator “is pleased to announce the selection of private-sector bond issuers to receive support under the Cambodia Sustainable Bond Accelerator.

“This is a crucial step towards growing Cambodia’s capital market and achieving our goal of encouraging the use of green, sustainability, and sustainability-linked bonds to aid private sector growth and sustainable development in Cambodia,” he was quoted as saying.

The statement concluded: “By the end of 2023, ESCAP and its partners look forward to supporting three new green and sustainable bond listings in Cambodia.”


  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of