Bonds

Royal Railways on Track to Receive $10m Bond

Royal Railways has received approval in the first step to be listed on Cambodia Securities Exchange to issue a $10 million bond as part of its expansion plans
Cambodia Securities Exchange. Kiripost/Siv Channa
Cambodia Securities Exchange. Kiripost/Siv Channa

Royal Railways has received approval from the Securities and Exchange Regulator of Cambodia (SERC) as the first bond listing company to issue a $10 million bond as part of its expansions.

In a press release on Wednesday, Cambodia Securities Exchange (CSX) said that Royal Railways will meet further listing requirements of the CSX.

CSX’s CEO Hong Sok Hour said the bond will be used to develop railways and buy more train carriages after seeing an increase in demand for transport.

“It is like they borrow money from the public but as a bond, which will be listed on the securities market and those who buy it can sell it on the market,” Sok Hour told Kiripost.

CSX said that Royal Railways was established in 2015 and had a concession agreement with the government. Royal Railways provides rail transport services, including freight transportation and passenger trains.

The company currently has two railway lines totalling 650 kilometers that connect Phnom Penh and Preah Sihanouk, and Phnom Penh and Poipet.

CSX’s Market Operations Director, Kim Sopha Nita, said that after receiving approval on a listing eligibility review from CSX, the applicant must submit further documents to the regulator and work on the public roadshow and bond subscription.

The final step is to get the issued bonds listed on the CSX, if the issuance results meet CSX’s listing requirements.

“Securities markets have become a new financing gateway for more and more variety of industry in Cambodia, and in a similar context the market is now offering more diversified companies for investors to manage their portfolio risk and return,” Sopha Nita told Kiripost.