Acleda Bank Plc. decided to invest $30 million in a guaranteed bond of the Cambodia Airport Investment Co Ltd (CAIC) for the development of the Techo International Airport, in Kandal province.
The signing ceremony was held on Monday between Charles Vann, director of the Cambodia Airport Investment Co Ltd and In Channy, President and Group Managing Director of the ACLEDA Bank Plc. in the presence of Pung Kheav Se, Chairman of Overseas Cambodian Investment Corporation Ltd, the parent company of CAIC.
The investment of Acleda Bank Plc. is $30 million in Techo International Airport Guaranteed Bond through private placement.
The coupon rate of CAIC bond is 5.5 percent per annum with three years tenor and guaranteed by OCIC.
“The funds raised from Techo International Airport Guaranteed Bond will be used for the construction and development of Techo International Airport in Kandal province,” read a press release issued upon the signing ceremony.
Techo International Airport project is currently 30 percent completed with a total amount of $390 million excluding airport land already invested by CAIC.
CAIC is a joint venture between the Royal Government of Cambodia represented by the State Secretariat of Civil Aviation and OCIC. The RGC has granted CAIC the rights to own, design, construct, finance, operate, maintain and manage Techo International Airport Project.
The investment in guaranteed bonds of the Cambodia Airport Investment Co Ltd has gained interest from investors, particularly from the banking sector.
Prime Minister Hun Sen has called local investors and the private sector to invest with the CAIC on the airport project.
Pung Kheav Se, chairman of the airport’s developer Overseas Cambodian Investment Corp Ltd (OCIC), has said the company is committed to completing construction on schedule, despite the Covid-19 pandemic.
Prince Bank is the first investor that invested CAIC’s $15 million guaranteed bond, followed by FTB bank, ABA Bank, and the CPBank.
OCIC is the largest investment group and local conglomerate in Cambodia. The company’s core expertise is in infrastructure development, real estate, construction, property management, education, medical, shopping mall, hotel, rice mill, manufacturing etc with notable projects such as Techo International Airport, Diamond Island City, Norea Island, Chroy Changvar Satellite City and Olympia City Complex.
ACLEDA Bank Plc. is a public Limited Company and formed under the Laws of the Kingdom of Cambodia and the first commercial bank listed on Cambodia Securities Exchange.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.