Prince Bank has added $35 million in guaranteed bonds of the Cambodia Airport Investment Co Ltd to support the development of the Techo International Airport, making them the largest subscriber of the CAIC Bond to date.
The signing ceremony was witnessed by Neak Oknha Dr Pung Kheav Se, Chairman of OCIC and CAIC, and Neak Oknha Chen Zhi, Chairman of Prince Bank Plc. The agreement was signed by Honn Sorachna, CEO and Managing Director of Prince Bank and Charles Vann, Director of CAIC. Also present were the directors and senior management of OCIC, CAIC and Prince Bank.
Prince Bank’s made a total of $50 million investment in the Techo International Airport Guaranteed Bond through private placement.
The funds raised from bond will be used for the construction and development of Techo International Airport in Kandal province.
The coupon rate of CAIC bond is 5.5 percent per annum with 3 years tenure and guaranteed by OCIC, the largest investment group and local conglomerate in Cambodia.
The OCIC’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.
CAIC is a joint venture between the Royal Government of Cambodia (RGC) represented by the State Secretariat of Civil Aviation and OCIC.
It started its business operations in 2015 as a private microfinance institution under the former name Prince Finance Plc and was transformed into a commercial bank on 18 July 2018. Prince Bank is the first local commercial bank which has invested in the CAIC’s guaranteed bond.
This was made after Prime Minister Hun Sen called on local investors, especially banks, to invest in supporting airport development.
A dozen of commercial banks and financial institutes have injected their investment into CAIC’s bonds.
Techo International Airport project is currently 31.1 percent completed with a total amount of $434 million already invested by CAIC.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.