Phnom Penh, Cambodia – 21 June 2024 – The Cambodia Sustainable Bond Accelerator (CSBA) Program has selected three private-sector bond issuers to receive comprehensive support for their inaugural green, social, and sustainability bond issuances in 2024. These issuances will support projects with significant environmental and social benefits in Cambodia.

The program, which is now in its second phase, is a joint effort by the Securities and Exchange Regulator of Cambodia (SERC), Global Green Growth Institute (GGGI), the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in collaboration with the Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank (CGIF) and GuarantCo, part of the Private Infrastructure Development Group.

The selected applicants have a total aggregate investment requirement of USD 140 million in the thematic bond across renewable energy and financial sectors. The information of the selected companies are as follow:

1. LOLC (Cambodia) Plc

• Issuance size: USD 50 million sustainability bond

• Proceeds Allocation: USD 10 million for green projects and USD 40 million for social projects.

• Target Issuance: Q4 2024.

2. SCHNEITEC Dynamic Co., Ltd

• Issuance size: USD 50 million Green Project Bond (Project Sunflower).

• Proceeds Allocation: Funding a solar photovoltaic power plant.

• Target Issuance: Between Q4 2024 and Q1 2025.

3. Wing Bank (Cambodia) Plc

• Issuance size: USD 40 million sustainability (social/green) bond.

• Proceeds Allocation: Loans for women entrepreneurs, SMEs, and low-income families.

• Target Issuance: Q4 2024.

Bond issuers in emerging and frontier markets often face significant barriers, with those issuing thematic bonds (green, social, and sustainability bonds) facing additional constraints such as limited issuer awareness, capacity, and higher issuance costs. The program aims to mitigate these challenges by providing technical assistance, financial support (co-financing for second-party opinion reviews) and enhanced investment support to the selected issuers.

H.E. Sou Socheat, Director-General, Securities and Exchange Regulator of Cambodia, said, “The Royal Government of Cambodia has prioritized climate mitigation and adaptation in its national development strategy, requiring an estimated USD 7.8 billion in funding, according to the updated Nationally Determined Contribution (NDC). Therefore, thematic bonds offer a crucial mechanism to bridge this financing gap, mobilizing investments for public and private sector in green and sustainable initiatives. Also, these bonds will contribute to the greenhouse gas emissions reduction, contribute to the NDC and lead to more green job creation.’’

Launched in February 2023, the program aims to accelerate the development of Cambodia’s green and sustainable bond market and associated policies, tools and mechanisms to facilitate financing towards climate mitigation and adaptation initiatives.

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For Media Inquiries, Please Contact:

– Mr. Samedy, SUT, at sut.samedy@gggi.org

– Mr. Mey Lybunleaph, at m_lybunleaph@serc.gov.kh

About GGGI

Based in Seoul, GGGI is a treaty-based international, inter-governmental organization- with 48 Members and over 22 countries and regional integration organization(s) in the process of accession – dedicated to supporting and promoting strong, inclusive, and sustainable economic growth in developing countries and emerging economies.  With operations in over 30 countries, GGGI serves the role of an enabler and facilitator of Members’ transition into a low-carbon green economy, providing policy advice and technical support in the development of green growth plans, policies, and regulations, mobilization of green investments, implementation of green growth projects, and development of local capacities and knowledge sharing. Further information on GGGI’s events, projects, and publications can be found on www.gggi.org.

About ESCAP

The Economic and Social Commission for Asia and the Pacific (ESCAP) is the most inclusive intergovernmental platform in the Asia-Pacific region. The Commission promotes cooperation among its 53 member States and 9 associate members in pursuit of solutions to sustainable development challenges. ESCAP is one of the five regional commissions of the United Nations.

The ESCAP secretariat supports inclusive, resilient and sustainable development in the region by generating action-oriented knowledge, and by providing technical assistance and capacity-building services in support of national development objectives, regional agreements and the implementation of the 2030 Agenda for Sustainable Development.

About SERC

The Securities and Exchange Regulator of Cambodia (SERC) is responsible for regulating, supervising and developing the securities market in Cambodia. More information about the SERC is available on www.serc.gov.kh.

About CGIF

CGIF is a multilateral facility established by the Association of Southeast Asian Nations (“ASEAN”) members, China, Japan, Korea (“ASEAN+3”) and Asian Development Bank (“ADB”). It is established as a trust fund of ADB with paid-in capital of USD1,158 million from its Contributors. As a key component of the Asian Bond Markets Initiative (“ABMI”), CGIF was established to develop and strengthen local currency and regional bond markets in the ASEAN+3 region. CGIF commenced its guarantee operations on 1 May 2012 and seeks to provide credit enhancements, mainly in local currencies, issued by credit worthy ASEAN+3-domiciled bond issuers.

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 6.2 billion of total investment and USD 5.2 billion of private sector investment, giving 45.2 million people improved access to infrastructure and creating around 229,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development www.guarantco.com