Investment Hightlights

Cambodia Weekly Financial News
November 27 ~ December 01, 2023

27 November 2023

Minister of Commerce highlights the trade opportunities
and benefits of implementing the Cambodia-UAE CEPA in the future

The Minister of Commerce of Cambodia, Cham Nimmol, briefed the representative of the Cambodian Private Business Centre in Dubai on the business opportunities in Cambodia and the expected benefits of implementing the Comprehensive Economic Partnership Agreement between Cambodia and the United Arab Emirates (Cambodia-UAE CEPA) in the near future. On this occasion, Ms. Cham Nimmol also allowed Ms. Chenling Zhang, General Director of OneRoad Group, to pay a courtesy call and discuss work on strengthening and expanding investment activities and business activities of companies operating in both countries as well.

Source : Khmer Times

28 November 2023

CSX: Historic green bonds issued in first for Kingdom

Cellcard (CamGSM), a leading and longstanding telecommunications service provider, achieved an historic milestone as the first company on the Cambodia Securities Exchange (CSX) to officially list and issue sustainability bonds. The move raised nearly $20 million, earmarked for expanding its business operations. Cellcard officially issued the debt securities on November 24, accumulating $19.9 million with a ten-year maturity period. Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), noted that this was CamGSM’s second listing on the CSX. The company completed its initial public offering on June 27, 2023, raising approximately $5.2 million. He stated that the company registered the sale of sustainable bonds valued at about $19.9 million, each with a par value of 100,000 riel ($24.41), with a coupon rate of SOFR+3% or 5.5% per annum (whichever is higher), and semiannual coupon payments, on November 24.

Source : The Phnom Penh Post

29 November 2023 

Cambodia makes rapid strides in financial inclusion

Cambodia made rapid strides in improving financial literacy and thereby financial inclusion in the country with a host of measures in the last couple of years, said Yim Leat, Deputy Governor of the National Bank of Cambodia (NBC), yesterday. “Over the years, the implementation of NFIS by NBC with the support of financial services providers and various associations has significantly improved the financial inclusion landscape in Cambodia,” he noted. These programs include the integration of finance as a subject in the national school curriculum, enhancement of women’s financial literacy and digital literacy, promotion of women entrepreneurship (under ESCAP’s project), Let’s Talk Money Campaign, the conduct of microfinance dissemination workshops for rural authorities, the implementation of ‘Community Safe Finance’ project, the development of financial literacy roadmap, and the development of sex-disaggregated data collection framework.

Source : Khmer Times

30 November 2023
 

Understanding ‘blue chip’ stocks and how they can benefit an investment portfolio

With markets open to fluctuations, many investors gravitate towards investments that offer “safety, stability, and resilience”, such as those known as “blue chip” stocks. These stocks are known for their ability to weather economic downturns and provide relatively stable returns over the long term. Some examples of blue-chip stocks include Coca-Cola, Walmart, Nike, PepsiCo, Microsoft, Apple, Tesla and Johnson & Johnson. Blue-chip stocks are popular among investors, particularly the more risk averse, due to their reputation for reliability and stability. The pros of blue-chip stocks include low volatility, low risk investment, pay steady return and dividend yields to shareholders, well-regulated and governed, with reports proven to be accurate, and Blue-chip companies are often leaders in their respective industries. The cons of blue-chip stocks may include higher share price, slower growth which can result in lower capital appreciation, moderate dividends as their yields may not always outperform the broader market, conservative approach, and safe, but not 100 per cent immune from economic downturns. 

Source : The Phnom Penh Post

30 November 2023

MFI sector resilient amid global crisis

Despite the uncertain national and global economic situation, Cambodia’s microfinance operations have demonstrated resilience and continue to make substantial contributions to macroeconomic activity by injecting financial resources into the economy. Sok Voeun, chairman of the Cambodia Microfinance Association (CMA), stated at the 2023 Microfinance Conference in Siem Reap province on November 24, that at the end of the third quarter of 2023, the sector had a total loan balance exceeding $5 billion and more than 1.5 million loan customers.  Deposit-taking microfinance institutions (MFIs) held over $2 billion in deposits with nearly 2 million depositors. “The microfinance sector in Cambodia continues to maintain its stability by providing services with a high sense of responsibility and customer protection,” he stated. He added that the industry comprises over 900 offices and employs more than 20,000 individuals – data which does not include banks that are members of the association. 

Source: The Phnom Penh Post

01 December 2023

CDC approves $160M in new investment projects in SEZs

The Council for the Development of Cambodia (CDC) has approved 13 investment projects in special economic zones (SEZs) with a total investment of more than $160 million, expected to generate thousands of jobs across Svay Rieng, Preah Sihanouk and other provinces.  The CDC announced on November 30 that it approved a SchneiTec Vibrant Co Ltd initiative worth $65.5 million to develop a 60-megawatt solar power plant with a power storage system in Svay Rieng province. Other ventures in the province include Vacation Industry Co Ltd with a $7.3 million investment; Star United Christmas Decoration Co Ltd with $6 million; CH Lighting Tree Co Ltd with $5.8 million; and Glorious Building Material (Cambodia) Co Ltd with $1.2 million.  Projects in Preah Sihanouk include Justmarvelous Co Ltd with an allocation of $8.2 million in capital; Kamelun Wood Co Ltd with $3 million; and Angel Wood (Cambodia) Co Ltd with $1.4 million. Other investments were garment factory related projects in various provinces. 

Source: The Phnom Penh Post 

01 December 2023

NBC leading digital fintech advancement development

The central bank emphasized that the rapid development of digital technology and innovation, particularly in financial technology (fintech) systems, presents various digital-related risks to society. Chea Serey, governor of the National Bank of Cambodia (NBC) Serey stressed the challenges that need addressing for the country to fully benefit from technological advancements. As fintech rapidly evolves, new and complex risks like cybersecurity have emerged. Serey highlighted the need for more responsive regulation to keep pace with these developments. “Enhancing the legal framework to address cybersecurity, data privacy and protection is crucial to building trust in digitization,” she added. According to Serey, as a facilitator in the payment system the central bank has embraced recent technologies in the name of modernization. This includes the introduction of several mechanisms such as the National Clearing System (NCS), the Online Banking System (OBS), the NBC Platform (NBCP), the Cambodian Shared Switch (CSS), Fast Payment and most recently Bakong – the backbone of the payment network.

Source: The Phnom Penh Post

01 December 2023

CIA First international school plans to sell bonds 

Cambodia Securities Exchange (CSX) is honored to notify the public that the CSX granted its approval in principle on bond listing eligibility review to CIA First International School Co., LTD. On November 23, 2023. In order to be officially listed and have its securities traded on the CSX, the CIA First shall get offering approval from the securities and Exchange Regulator of Cambodia (SERC) and meet further listing requirement of the CSX. And the CIA First is the third company obtaining the approval in principle on bond listing from CSX in the year 2023. According to the announcement, CIA First International School was established in 2016 and currently has three campuses in Phnom Penh, ranging from kindergarten to high school. The face value of the bonds is 100,000 riels, and a total of 825,000 bonds were issued, with a total value of 82.5 billion riels (approximately US$20 million). The annual interest rate is the guaranteed overnight financing rate plus 3% (SOFR + 3%) or 5.5% (depending on Whichever is higher), the bond maturity date is November 15, 2033.

Source: The Cambodia China Times

01 December 2023

The Gov’t approved USD$ 65.5 million Solar Power Plant in Svay Rieng

The Council for the Development of Cambodia (CDC) has officially endorsed the registration of “SCHNEITEC VIBRANT CO., LTD” for a pioneering project – the construction of a USD$ 65.5 million solar power plant in Svay Rieng province, according to the publication of the CDC on November 30, 2023. The proposed solar power plant, set to be established in Kandal village, Svay Chek commune, Romduol district, Svay Rieng province, is poised to be a beacon of innovation and environmental responsibility. With a robust capacity of 60 MW, complemented by an advanced power storage system, the facility is expected to play a pivotal role in meeting the growing energy demands of the region.

Source: Construction and Property

Lady Aegies Comment : To be continue...............