The Bank for Investment and Development of Cambodia and Canadia Bank, two of the three cash settlement agents operating in the country, on Friday launched new services for companies listed in the Cambodia Securities Exchange (CSX).
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In a bid to lure more companies to join CSX, the banks will offer loans and fixed deposit accounts with special interest rates.
CSX-listed companies can now raise capital through loans with low interest rates, CSX said at an event Friday to mark the launch of the new services.
Sou Socheat, director general of the Securities and Exchange Commission of Cambodia (SECC), said the new services will encourage more companies to join CSX.
He said listed companies must meet SECC’s strict requirements and are thus less likely to default on a loan.
“Listed companies must meet SECC’s requirements when it comes to transparency, accountability, good governance and good management. These firms are the ideal customer for banks, so it makes sense that they can access financial support with special conditions,” he said.
The new services create synergy between the banking and securities sectors, said Jong Weon Han, vice-chairman of CSX.
“Listed companies will earn trust from investors and build confidence with their partners,” Mr Weon Han said.
Raymond Sai Say Guan, CEO of Canadia Bank, said Cambodia’s strong economic growth reflects strong business confidence and stability in the country, adding that more companies are likely to join CSX in the near future.
“Canadia Bank is pleased to cooperate today with the Securities and Exchange Commission of Cambodia as well as the Cambodia Stock Exchange to support the banking and financial needs of listed firms and the growth of the capital market,” Mr Sai Say Guan said.
Acleda Bank, the other cash settlement agent in Cambodia, will begin offering similar services soon, Mr Socheat said, adding that two more banks will receive cash settlement agent licenses this year.