CamGSM Secures US$70m for Telecom Upgrading for 5G Internet Backed by GuarantCo Guarantee

• Sommana Yan
• 29 January 2024
• Local News
• 3884 Views

In a landmark move, Cambodian telecommunications leader CamGSM, popularly known as Cellcard, has successfully raised US$70 million through a bond issue, fortified by a GuarantCo Guarantee, signalling a significant stride in the augmentation of its telecom infrastructure, according to Realassets.ipe.com on 24 January 2024.

The substantial capital infusion from the bond and accompanying loan is earmarked for Cellcard’s ambitious plans, encompassing the construction of new 4G towers, upgrading existing equipment for enhanced energy efficiency, and preparing the network for the accelerated rollout of 5G internet services.

Simon Perkins, CEO of CamGSM, emphasised the broader impact of this strategic financial move. “The CamGSM’s sustainability bond and secured financing will support projects aiming to alleviate climate change-related risks with investment in renewable energy and provide connectivity to the underserved population,” he said.

“The US$70 million funds, guaranteed by GuarantCo, will be allocated strategically, enhancing network and infrastructure capabilities while investing in environmentally friendly products and initiatives focused on serving underserved communities,” added the CEO.

Layth Al-Falaki, CEO at GuarantCo, expressed enthusiasm, stating, “We are delighted to close our first telecommunication transaction in Asia and third transaction in Cambodia from which many local people and businesses will benefit due to the improved quality of telecommunication services.”

GuarantCo, a key player in the Private Infrastructure Development Group, backed by donors and dedicated to fostering private sector infrastructure investments in the world’s lowest-income countries, provided the crucial guarantee supporting the fully subscribed bond. Notable institutional investors, including Manulife and Prudential Cambodia, played a pivotal role, alongside financial backing from Deutsche Bank.

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