ABA​ Bank​ to​ issue​ bonds​ in​ the​ amount​ of​ KHR​ 128​ billion

31/07/2019

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Advanced​ Bank​ of​ Asia​ Limited​ (ABA​ Bank),​ one​ of​ Cambodia’s​ leading​ commercial​ banks​ and​ a​ member​ of​ National​ Bank​ of​ Canada​ Group,​ held​ a​ Roadshow​ at​ the​ Cambodia​ Securities​ Exchange​ to​ announce​ the​ upcoming​ subscription​ and​ issuance​ of​ KHR​ 128​ billion​ (USD​ 32​ million)​ in​ corporate​ bonds​ (ABA​ Bond).

ABA​ bond​ will​ be​ the​ first​ offer​ of​ debt​ securities​ from​ a​ commercial​ bank​ in​ Cambodia.​ It​ is​ also​ the​ first​ Cambodian​ bond​ with​ ‘B’​ rating​ from​ S&P​ Global​ Ratings​ agency.​ Most​ of​ the​ bond​ will​ be​ subscribed​ by​ local​ institutional​ investors,​ and​ a​ portion​ is​ reserved​ for​ retail​ investors.

ABA​ Bank​ intends​ to​ use​ the​ net​ proceeds​ for​ funding​ the​ growth​ in​ lending​ business​ and​ for​ operating​ expenditure.​ The​ proceeds​ from​ the​ bond​ issuance​ will​ support​ rural​ micro-,​ small​ and​ medium​ enterprises​ (“MSME”),​ including​ women​ entrepreneurs​ in​ Cambodia.

The​ terms​ of​ ABA​ Bond​ are​ as​ follows:

  • Issuer:​ Advanced​ Bank​ of​ Asia​ Limited​ (ABA​ Bank).
  • Total​ amount​ of​ the​ public​ offering:​ KHR​ 128​ billion​ (~USD​ 32​ million).​
  • Offering​ price​ per​ bond:​ KHR​ 100,000​ (~USD​ 25).
  • Coupon​ rate:​ 7.00%​ -​ 7.75%​ per​ annum​ with​ 3-year​ maturity​ and​ semi-annual​ coupon​ payments.
  • Tentative​ issue​ date:​ August​ 16,​ 2019.
  • Type:​ the​ corporate​ bond​ constitutes​ a​ name​ registered,​ unsecured​ and​ unsubordinated​ obligation.​
  • Credit​ rating:​ “B”​ from​ S&P​ Global​ credit​ rating​ agency.​
  • Minimum​ investment​ amount:​ KHR​ 800​ million​ (~USD​ 200,000)​ for​ institutional​ investors​ and​ KHR​ 4​ million​ (~USD​ 1,000)​ for​ retails​ investors.​
  • Tentative​ subscription​ period:​ August​ 14​ -​ August​ 15,​ 2019.​

SBI​ Royal​ Securities​ is​ the​ sole​ financial​ advisor​ and​ underwriter​ for​ this​ corporate​ bond​ issuance.

For​ more​ information​ on​ ABA​ bond,​ please​ contact:

Mr.​ Seng​ Chan​ Thoeun
Managing​ Director​
Head​ of​ Corporate​ Finance​
SBI​ Royal​ Securities​ Plc
Tel:​ +855​ 23​ 999​ 595​
Mobile:​ +855​ 16​ 925​ 259/+855​ 77​ 333​ 629​
E​ mail:​ tseng(at)sbiroyal.com
Website:​ www.sbiroyal.com

Mr.​ Zhiger​ Atchabarov
Chief​ International​ Operations​ Officer​
ABA​ Bank​
Tel:​ +855​ 98​ 203​ 512​
Mobile:​ +855​ 98​ 630​ 168​
E-mail:​ zhiger(at)ababank.com
Website:​ www.ababank.com

About​ SBI​ Royal​ Securities:
SBI​ Royal​ Securities​ is​ the​ leading​ securities​ firm​ in​ Cambodia,​ offering​ a​ full​ range​ of​ investment​ services,​ which​ include​ underwriting,​ advising,​ mergers​ and​ acquisitions,​ and​ brokerage.​ In​ 2018,​ SBI​ Royal​ Securities​ was​ named​ as​ Cambodia’s​ “Best​ Corporate​ and​ Investment​ Bank”​ by​ Asiamoney​ magazine.​
Established​ in​ February​ 2010,​ SBI​ Royal​ Securities​ Plc​ (SBIR)​ became​ the​ first​ Japanese​ financial​ institution​ to​ acquire​ the​ “full​ license”​ required​ to​ operate​ a​ securities​ business​ in​ Cambodia​ from​ Securities​ and​ Exchange​ Commission​ of​ Cambodia​ (SECC).​
SBI​ Royal​ Securities​ has​ completed​ many​ historic​ transactions​ including​ the​ IPO​ of​ the​ Port​ of​ Sihanoukville​ (CSX​ listing:​ PAS),​ the​ IPO​ of​ Phnom​ Penh​ Special​ Economic​ Zone​ (CSX​ listing:​ PPSP),​ the​ first-ever​ corporate​ bond​ in​ Cambodia​ offered​ by​ Hattha​ Kaksekar​ Limited​ (CSX​ listing:​ HKL21A),​ and​ many​ other​ financing​ projects.

About​ ABA​ Bank:
ABA​ Bank​ is​ one​ of​ Cambodia’s​ leading​ banking​ institutions​ founded​ in​ 1996.​ Today,​ ABA​ offers​ the​ entire​ spectrum​ of​ modern​ financial​ services​ and​ digital​ banking​ solutions​ to​ customer​ segments​ covering​ SMEs,​ microbusinesses,​ and​ individuals.​
As​ at​ May​ 31,​ 2019,​ ABA​ Bank’s​ total​ assets​ equaled​ to​ US$3.36​ billion,​ making​ it​ the​ third​ largest​ bank​ in​ Cambodia.​ In​ 2017,​ ABA​ Bank​ received​ the​ issuer​ credit​ rating​ ‘B’​ from​ Standard​ &​ Poor’s​ (S&P)​ Global​ Ratings.​ In​ 2018,​ S&P​ reaffirmed​ the​ credit​ rating​ with​ “Positive”​ outlook.
ABA​ Bank​ was​ named​ “Best​ Bank​ in​ Cambodia”​ for​ 2015-2019​ by​ major​ publications​ including​ The​ Banker,​ Euromoney,​ and​ Global​ Finance​ magazines.
The​ major​ shareholder​ of​ ABA​ Bank​ is​ National​ Bank​ of​ Canada​ (www.nbc.ca),​ the​ sixth​ largest​ bank​ in​ Canada​ and​ the​ leading​ bank​ in​ Quebec​ where​ it​ is​ the​ partner​ of​ choice​ among​ SMEs.