Cellcard head office in Phnom Penh. Heng Chivoan
The Securities and Exchange Regulator of Cambodia (SERC) is currently reviewing the application from CamGSM Plc, the nation’s largest locally-owned mobile operator, which seeks to issue debt securities (sustainable bonds). The move aims to secure around $20 million for network expansion and debt refinancing.
SERC director-general Sou Socheat told The Post on October 9 that following approval from the Cambodia Securities Exchange (CSX), his technical team is now evaluating CamGSM’s application.
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“We’re diligently working on their application, aiming to align with the company’s listing expectations. Nevertheless, every detail must pass our institution’s scrutiny,” he said.
He noted that in the coming fortnight, SERC will seek financial verification and approval from the Non-Financial Service Authority (NFSA).
“Once we receive the nod from the NFSA, we’ll initiate the subscription period leading up to the listing at the CSX. The company has made significant progress, but we must withhold any notifications until we have granted approval,” he stated.
A notice from CamGSM on October 6 informed the public that the company, already listed on the CSX, has gained the board of directors’ approval to issue a sustainable bond to qualified investors. The issuance is capped at $200 million over a decade, with the capital allocated for network development and debt restructuring.
“CamGSM is diligently pursuing approvals from SERC and CSX in line with relevant laws and regulations. We anticipate finalising this by early November,” said the telco.
Hong Sok Hour, the CEO of CSX, first revealed on October 2 that CamGSM was planning the release of a corporate green bond aimed at institutional investors.
“We encourage listed companies to launch corporate bonds, as the procedure is streamlined for them. Many institutional investors, including insurance firms, gravitate towards corporate bonds due to their consistent and lucrative interest rates,” he said.
Sok Hour projected the bond issuance to be completed this month or next, based on CamGSM’s recent securities listing.
The company grossed $5.3 million following their public debut on June 27, where 9.3 million shares were listed on CSX at 2,270 riel each.
The telco reported a net profit surge of 9.9 per cent in Q2, tallying 45.8 billion riel ($11.2 million), a rise from the previous year’s 41.7 billion riel ($10.2 million). The company’s revenue reached approximately 186 billion riel ($45.4 million) in Q2, as per their filing on September 19.
As of June 30, company assets stood at 2.6 trillion riel ($637.42 million) and their equity reached approximately 877.8 billion riel ($241 million), representing a 14.2 per cent rise from 768.3 billion riel ($187.4 million) in Q2-2022.
