Hattha Kaksekar Ltd. will issue the first corporate bond in the country, Khmer Times reported Aug. 27, citing company president and CEO, Hout Ieng Tong.
The Cambodian microfinance company plans to offer 80 billion riel worth of bonds, with an option to raise the offering by an additional 40 billion riel. The bonds will have a tenor of three years and the annual coupon rate would range from 7.5% to 8.5%.
The company would use proceeds from the issuance to fund its lending business, for working capital and for general corporate purposes.
The issuance would mark the launch of Cambodia's bond market. The company has already received approval from the country's central bank for the issuance.
As of Aug. 27, US$1 was equivalent to 4,030.50 Cambodian riel.