By John Tanner
CamGSM – which operates under the brand name Cellcard – announced Friday that it received “approval in principle” from the Securities Exchange Regular of Cambodia (SERC) for its sustainability bond listing eligibility. It also received the same approval in principle from the Cambodia Securities Exchange (CSX) on September 28.
The operator plans to issue its sustainability bond of up to US$20 million with a maturity of 10 years, effective early November 2023. CamGSM intends to use the money earned from the bond to fund network expansion and pay off existing debts.
CamGSM says it is still negotiating the interest rate and the creditors for the bond, which is being underwritten by Royal Group Securities. If everything goes according to plan, CamGSM would become the first issuer of a sustainability bond in Cambodia
The sustainability bond follows CamGSM’s IPO launch in June last year, which raised over US$5 million. The bond has been in the works since July 2023, when the board of directors authorizing the issuance of debt securities up to US$70 million.
Last month, Cellcard reported a net profit of 45.8 billion riel (around US$11 million) for the second quarter of FY2023, up 9.9 per cent year on year.
