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