LOLC (Cambodia) Plc. was granted permission by the Securities and Exchange Commission of Cambodia (SECC) to issue corporate bonds on the local securities market.
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The company is now one step closer to issuing the bonds, which it says it will do during the first week of May.
The decision to grant LOLC permission to issue corporate bonds was made during a meeting on Wednesday between SECC representatives and Aun Pornmoniroth, the Minister of Economy and Finance.
“The institution will issue corporate bonds worth about $20 million. Now it has to continue with the listing process and ensure that it complies with SECC’s regulations,” the regulator said in a press release issued after the meeting with the minister.
Sok Voeun, CEO of LOLC, told Khmer Times yesterday he is glad his institution is now one step closer to issuing the bonds.
“After Khmer New Year, we plan to organise workshops to spread information and build awareness about the bonds,” he said.
“The listing on the Cambodia Securities Exchange (CSX) will take place during the first week of May,” he said, adding that all the money from the issuance will be used to expand their loan portfolio.
LOLC, one of the leading microfinance-deposit taking institutions, announced their plans to raise $20 million by issuing corporate bonds on CSX in February. Shortly after, it obtained approval from the National Bank of Cambodia.
The bonds will have a tenor of 3 years. The final coupon rate of the bonds will be determined before the subscription period, LOLC said.
LOLC will be only the second institution to issue corporate bonds in Cambodia, following in the footsteps of Hattha Kaksekar Limited (HKL), another microfinance institution that issued Cambodia’s first corporate bond last year.
LOLC will offer investors fixed-coupon bonds and also FX-indexed bonds.