ACLEDA Bank Successfully Lists Subordinated Bond on Cambodia Securities Exchange
On February 24, 2025, an official ceremony was held at the Cambodia Securities Exchange (CSX) building to commemorate the official listing of ACLEDA Bank Plc’s subordinated bond on the CSX.
The ceremony was presided over by H.E. Dr. Hean Sahib, Secretary of State at the Ministry of Economy and Finance (MEF) and Chairman of the Board of Directors of the CSX, and was attended by H.E. Sou Socheat, Director General of the Securities and Exchange Regulator of Cambodia (SERC); H.E. Hong Sok Hour, CEO of the CSX; Em Kamnan, Deputy Director General of Banking Supervision at the National Bank of Cambodia (NBC); and Dr. In Channy, President & Group Managing Director of ACLEDA Bank.
"I believe that this issuance of subordinated bonds will provide investors and customers with an additional investment option with ACLEDA Bank,” said Dr. In Channy, while speaking at the listing ceremony. “In addition, this issuance of subordinated bonds is a crucial contribution to promoting the growth and expansion of the capital market in Cambodia, and a new mechanism for collecting domestic capital funds to support customers and contribute to the development of the national economy and society.”
The first tranche of the subordinated bond was issued on January 22, 2025, successfully raising over USD 85.8 million (over KHR 343 billion), one of the largest transactions recorded on the CSX. ACLEDA Bank has obtained approval from the NBC and SERC to issue USD 100 million (KHER 400 billion) in subordinated bonds. Information on the second tranche subscription will be announced to investors at a later date, with the bond issuance process expected to be spread out over four tranches overall.
In an interview with B2B Cambodia, Dr. In Channy shared the he believes ACLEDA Bank’s success on the CSX is attributable to a high level of investor confidence that comes from the bank’s high level of transparency and adherence to regulatory requirements.
“The bank has confirmed its financial soundness with a credit rating that it obtained from an independent organisation, and investors are comforted by transparent financial reporting and the methods of risk management in place,” he said.
ACLEDA Bank’s Bond Listing History
While this ceremony marks ACLEDA Bank’s first official bond listing on the CSX, this is not the first time that the bank announced its intention to issue bonds.
In 2022, two years after listing equity securities on the CSX, ACLEDA Bank announced it had received approval from the NBC to issue green bonds, but the bank did not go through with the listing at the time. Dr. In Channy explained that the bank evaluated the market and ultimately determined that the timing was not quite right, as the cost of the bonds would be too high for its customers to enjoy. However, he stressed that the bank has only postponed these plans and still intends to go forward with a green bond listing in the future.
The bank also previously announced in 2023 its intention to issue bonds and raise USD 100 million on the Thailand Stock Exchange, however, these plans were postponed due to regulation changes made by the Thailand securities and exchange commission under the new Thailand government.
Promoting Cambodia’s Capital Markets And Rapidly Developing Financial Landscape
ACLEDA Bank has taken on a leading role in Cambodia’s capital markets, as one of the most actively traded stocks on the CSX, and through its various authorisations as an official issuer and intermediary agent, as well as its securities company division (ACLEDA Securities Plc.), which holds an official broker license.
“The strategic direction of ACLEDA Bank to actively participate in Cambodia’s capital markets has been advantageous for the bank and the whole financial sector,” Dr. In Channy told B2B Cambodia. “By assuming various positions such as issuer, intermediary, agent, and broker, the bank is consolidating its market leadership and shaping the future of Cambodia’s financial landscape.”
Looking ahead at Cambodia’s rapidly developing financial landscape, the bank President said he believes the future lies in new technological developments, as well as a stronger focus on sustainability.
“Proven financial services driven by AI, blockchain, and mobile payment systems will be the future generation of banking in Cambodia. There has been a rise in the popularity of green bonds and investments that prioritise ESG considerations. There will also be a stronger effort to make KHR transactions and financing easier,” he concluded.
