Phnom Penh (FN), Dec. 22 – The Royal Railway Plc launched its second USD 24 million corporate bonds on the Cambodia Securities Exchange (CSX) to support the development of railway systems.

The announcement ceremony today (Dec 22) is presided over by Sou Socheat, government delegate in charge as director general of the Securities and Exchange Regulator of Cambodia (SERC).

"This USD 24 million bond and its investment in Royal Railway PLC will play a major strategic development in railway infrastructures by supporting Cambodian demand for [railway] transportation through enhance capacity, safe transportation, and low cost," tycoon Kith Meng said.

"This bond is my commitment to develop the railway, which is a new and better service for the citizens," Meng added.

GuarantCo, part of the Private Infrastructure Development Group, has provided USD 24 million in guarantees to support high credit ratings for investors. SBI Royal Securities, a leading securities company in Cambodia, has acted as the exclusive partner of the bonds.

Bond investors include Prudential (Cambodia), Life Assurance Plc, and Manulife (Cambodia) Plc. The bonds are rated by Kh-AAA Rate Agency of (Cambodia) Plc.

"This is the second bond listed by Royal Railway on the CSX, which the profit will be used to further develop and expand an important infrastructure in Cambodia. This bond is the first infrastructure bond listed in Cambodia with many features that have the potential change to guide future infrastructure financing through the local capital market in the country," Sou Socheat underscored.

He added that the bonds also set a target for the Kh-AAA rating given by the newly established rating agency of Rating Agency (Cambodia) Plc.