UN, GGGI, and Cambodia Government Join Forces to Empower Green Bond Issuers

• Sommana Yan
• 3 July 2023
• Uncategorized @km
• 2157 Views

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Global Green Growth Institute (GGGI), and the Securities and Exchange Regulator of Cambodia (SERC) have partnered with the Credit Guarantee and Investment Facility (CGIF) and GuarantCo to launch the Cambodia Sustainable Bond Accelerator (CSBA), an initiative designed to provide crucial support to private-sector bond issuers in Cambodia.

This initiative, unveiled in March 2023,  aims to pave the way for a more sustainable and resilient future by facilitating green and sustainability bond issuance.

Under the CSBA, three pioneering private-sector bond issuers have been selected to receive comprehensive assistance in their green and sustainability bond issuance endeavors.

• Amret PLC, a prominent Cambodian microfinance deposit-taking institution, is preparing to issue a US$50 million sustainability bond.
• Golden Tree Co. Ltd., a leading real estate company, is set to receive support in issuing its second green bond worth US$25 million, dedicated to green building development.
• Royal Group Phnom Penh SEZ, a publicly listed company overseeing the management of the Phnom Penh Special Economic Zone, will receive assistance in issuing a $20 million sustainability bond. These visionary bond issuers have been carefully chosen to lead the way towards a more sustainable and environmentally conscious future.

Through the collaborative efforts of CGIF, ESCAP, GGGI, and GuarantCo, technical assistance and support will guide prospective issuers in developing robust bond frameworks and meeting best practices. Post-issuance reporting will be facilitated, and co-financing options will be available to reduce bond issuance costs and enhance investment support.

“The Sustainable Bond Accelerator program in Cambodia has achieved significant milestones. The sustainable bond size of three potential issuers collectively is around USD95 Million, which is close to 50 per cent of the current plain bond listed in Cambodia,” said Dr Frank Rijsberman, Director-General of GGGI.

“CSBA is a crucial step towards growing Cambodia’s capital market and achieving our goal of encouraging the use of green, sustainability, and sustainability-linked bonds to aid private sector growth and sustainable development in Cambodia,” said H.E Sou Socheat, Director General of SERC.

The Government of Cambodia has prioritised climate mitigation and adaptation in its national development strategy. With a financing gap of approximately $7.8 billion to achieve its climate goals, Cambodia recognizes the pivotal role that thematic bonds can play in mobilizing investment for green and sustainability initiatives.

As ESCAP and its esteemed partners continue to lend their unwavering support, the anticipated listing of three new green and sustainable bonds in Cambodia by the end of 2023 heralds a promising future for sustainable finance and environmental progress.