Telcotech Ltd, a leading provider of Fiber Optics Infrastructure and submarine networks and a subsidiary of the Royal Group, marked a significant milestone by listing its second $20 million bond on the Cambodia Securities Exchange (CSX) last Friday.
The corporate bond, aptly named the “Telcotech Public Bond,” comes with the backing of the Credit Guarantee and Investment Facility (CGIF). It boasts a total issuance size of approximately KHR 82.08 billion, equivalent to $20 million, and features a coupon rate term of SOFR+2.5 percent per annum, with a five-year maturity date. The funds raised from this offering are earmarked to invigorate the company’s business growth, with a primary focus on the expansion and enhancement of its fiber optic network infrastructure.
Hean Sahib, Secretary of State of the Ministry of Economy and Finance and Chairman of the Cambodia Securities Exchange, expressed his enthusiasm during the opening remarks. He emphasized that Telcotech’s official bond listing is the second such listing on CSX, with the first bond having been listed since 2021. Sahib underscored that this development highlights CSX’s pivotal role as not only an invaluable source of capital for companies but also as a catalyst for strengthening and broadening the horizons and business potential of local enterprises.
Quach Chin Hong, Deputy Chief Executive Officer of Telcotech Ltd, expressed his pride in Telcotech’s contributions to growth and progress under the visionary leadership of the Cambodian Government. Since its inception in 2007, Telcotech has gained widespread recognition from international partners, positioning itself as a key player in the telecommunications infrastructure sector.
The process of issuing Telcotech bonds, from the official application on December 26, 2023, to the successful listing on January 19, 2024, took less than a month, showcasing the efficiency of the CSX platform.
Hong Sok Hour, CEO of Cambodia Securities Exchange, lauded the success of Telcotech’s second bond listing as a model for other companies looking to raise capital from the market with ease and at lower costs. He highlighted that companies, whether listing stocks or bonds, can now pursue a second issuance with efficiency, reduced timelines, and cost-effectiveness.
Sok Hour shared that the number of companies listed on CSX that have raised capital from the public stands at 23. Among these, 11 are listed as equity securities, and 12 as corporate bonds. Collectively, these companies have raised approximately $379 million from the capital market, with an average daily trading value of around $210,000.
Established in 2012, CSX is a joint venture with the Cambodian government holding 55 percent of the stakes, while the Korean Exchange owns the remaining 45 percent. The continued growth and success of companies like Telcotech listing on CSX reaffirm its position as a vital financial hub for Cambodia’s economic development. Telcotech’s latest bond listing will contribute significantly to the expansion and enhancement of Cambodia’s vital telecommunications infrastructure.