HKL bond of­fi­cially lists on the CSX

The Phnom Penh Post - - BUSINESS - Kun Kourchet­tana

IN­VESTORS will have more op­tions in Cam­bo­dia’s se­cu­ri­ties mar­ket as Hattha Kak­sekar Lim­ited’s (HKL) first-ever cor­po­rate bond was of­fi­cially listed on the Cam­bo­dia Se­cu­ri­ties Ex­change (CSX) on Wed­nes­day.

Chea Serey, di­rec­tor-gen­eral at the Cen­tral Bank­ing Direc­torate, Na­tional Bank of Cam­bo­dia, said the list­ing un­der­scores the start of the bond cap­i­tal mar­ket in Cam­bo­dia, which is a key part of the fi­nan­cial mar­ket.

Cur­rently, there are more in­vest­ment in­stru­ments for in­vestors, fi­nan­cial in­sti­tu­tions and en­trepreneurs.

“It en­ables them to choose a new type of in­vest­ment, which is a fixed-in­come tool to meet their in­vest­ment strat­egy and with an ac­cept­able risk limit,” Serey said.

HKL Pres­i­dent and CEO Hout Ieng Tong said on Wed­nes­day dur­ing the CSX list­ing cer­e­mony that the list­ing is a suc­cess and that he is proud of his com­pany’s con­tri­bu­tion to the devel­op­ment of the King­dom’s se­cu­ri­ties mar­ket.

“From the date of this list­ing, in­vestors can buy [HKL] cor­po­rate bonds in Cam­bo­dia’s se­cu­ri­ties mar­ket if in­vestors hold­ing the bonds de­cide to put them on sale,” he said.

Listed on se­condary mar­ket

HKL’s cor­po­rate bond, which has the bond sym­bol “HKL21A”, is traded on CSX’s se­condary mar­ket af­ter the list­ing.

In­vestors can place or­ders to sell or buy through any se­cu­ri­ties com­pany in a process sim­i­lar to stock trad­ing. Prices of the bonds may fluc­tu­ate based on mar­ket sup­ply and de­mand.

At the sub­scrip­tion, 1.2 mil­lion cor­po­rate bonds were pur­chased by in­sti­tu­tional in­vestors at 100,000 riel ($25) each, an an­nual coupon rate of 8.5 per cent and three years ma­tu­rity. The com­pany raised $30 mil­lion from the is­sue.

CSX CEO Hong Sok Hour said bond­hold­ers can hold them till the ma­tu­rity date to re­ceive in­ter­est or they can sell them in the se­condary mar­ket if of­fered at a high price.

“I ex­pect some hold­ers may sell the bonds when there is a mar­ket de­mand, which will lead to mar­ket ac­tiv­ity,” he said.

HONG MENEA

HKL Pres­i­dent and CEO Hout Ieng Tong (right) and Min­istry of Econ­omy and Fi­nance’s De­part­ment of Fi­nan­cial In­dus­try di­rec­tor-gen­eral Mey Vann (left) at the CSX list­ing cer­e­mony ring the bell, sym­bol­is­ing the of­fi­cial list­ing of HKL’s cor­po­rate bond on the CSX.

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