Solar power developer SchneiTec Dynamic Co Ltd, which operates a 60 megawatt solar project in Kampong Chhnang, has issued a $50 million sustainable bond to fund the expansion of its infrastructure.
Touted as the first project bond in Cambodia, the 15-year tenured bond with an 180-day average compounded secured overnight financing rate (SOFR) will be listed on Cambodia Securities Exchange on April 10.
The proceeds will be used by SchneiTec Dynamic and SchneiTec Group to accelerate solar energy capacity expansion, supporting Cambodia’s transition toward energy independence and cleaner energy sources, the bond’s sole manager Yuanta Securities (Cambodia) Plc said in a statement yesterday.
The investment-grade bond, consisting of two-tranches - $35 million guaranteed by the Credit Guarantee and Investment Facility (coupon rate of SOFR +1.8 percent and 1.6 percent) and $15 million unguaranteed (SOFR plus average and three percent) - is considered a “landmark transaction” as it sets a new benchmark for sustainable financing in the Cambodian bond market.
Global investors, including life insurance companies, an overseas export credit agency, major international commercial banks, and a prominent local bank invested in the bond, Yuanta Securities said.
The diverse investor base reveals a growing confidence in Cambodia’s renewable energy sector, reflecting the country's potential for sustainable development, as well as the ability for such projects to raise funds via bonds beyond traditional banking methods.
"This project bond is more than just a financial instrument – it marks a significant milestone for both Cambodia’s bond market and the renewable energy sector," said Han Kyung Tae, CEO of Yuanta Securities.
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Source: Kiri Post
April 01, 2025
