CSX Secures First Green Bond

Golden Tree has become the first green bond to be listed on CSX, with others set to follow suit this year
Golden Tree has become the first green bond to be listed on CSX, January 19, 2023. Kiripost/Siv Channa
Golden Tree has become the first green bond to be listed on CSX, January 19, 2023. Kiripost/Siv Channa

Golden Tree Co Ltd has become the first green bond to be listed on the Cambodia Securities Exchange (CSX), aiming to raise $1.5 million to finance environmentally-friendly estate.

The bonds will be issued to raise 6 billion riels, about $1.5 million, with 60,721 units at seven percent, with a maturity of five years.

Oum Sereyrotanak, Golden Tree’s Chief Financial Officer, said at the listing ceremony on Thursday that there are many companies that guarantee to buy bonds.

“Green bonds are issued for public companies and investors and the list of the bonds enhances investors to increase awareness in substantial investment securities, including revenue support environment,” Sereyrotanak said.

Hong Sok Hour, Royal Government Delegate in charge as CEO of the CSX, said it is the historical record of the bourse for the first official green bonds listing with Golden Tree real estate in Cambodia.

The Asian Development Bank (ADB) also helps with techniques so green bonds can be issued according to ASEAN Green Bonds Standards, an initiative that facilitates ASEAN capital markets in tapping green finance, he added.

Sok Hour added that the listing of the green bonds shows the security market is active, with reinforcement and strengthening the ecosystem. This listing campaign contributes to global environment threats 2013-2030, he said.

CSX has listed 18 companies, including nine bonds companies, with capital totalling $317 million. Despite this remaining small-scale compared to other countries, it has a positive impact in Cambodia, Sok Hour said.

He added that on some days, daily trading was valued approximately at $500,000 last year, compared to $270,000 in 2021. Sok Hour said that he wants to see $100 million traded every day by 2030.

Sou Socheat, Delegate of the Royal Government in charge as Director General of Securities and Exchange Regulator of Cambodia (SERC), said more companies are preparing to issue green bonds this year.

“This is the beginning with Golden Tree being listed with the green bonds in CSX. Although it’s a small listing, it is well-started,” Socheat said.

Socheat added CSX created markets to promote green bonds, encourage the issuance of bonds that should issue green, and invest in environmentally-friendly development that leads changes against climate change.

For the evaluation of the issuance of green bonds, there is assistance from the ADB to coordinate and respond to ASEAN Green Bonds Standards, because the bloc has the green bonds policy in which local companies are required to apply for a certificate for it.

"Cambodia does not yet have technicians to evaluate green bonds, so we need experts like ADB to help with this technique​ and other green international bodies to facilitate,” Socheat said.