CGCC invests in CAIC’s guaranteed bond to support Techo Int’l Airport
January 28, 2022Latest News
The Credit Guarantee Corporation of Cambodia Plc., a state-owned enterprise, has invested $2 million in guaranteed bonds to support Techo International Airport development in Kandal province.
The investment agreement was signed yesterday by Charles Vann, Director of Cambodia Airport Investment Co., Ltd (CAIC) and Wong Keet Loong, CEO of Credit Guarantee Corporation of Cambodia Plc in the presence of Pung Kheav Se, Chairman of Overseas Cambodian Investment Corporation Ltd. (OCIC) and Mey Vann, Secretary of State of the Ministry of Economy and Finance and members of CGCC’s Board of Directors.
The coupon rate of CAIC bonds is 5.5 per cent per annum with a three-year tenor and guaranteed by OCIC. The funds raised from the Techo International Airport Guaranteed Bond will be used for the construction and development of the Techo International Airport in Kandal province, the CAIC said.
Techo International Airport project is currently 30 percent completed with a total amount of $390 million, excluding airport land already invested by CAIC.
Wong said the CGCC’s investment is to contribute to the development of infrastructure in Cambodia.
“This bond investment is part of CGCC’s diversification in investing our funds in bonds other than fixed deposits. We are pleased to invest and support the development of the Techo International Airport in contributing to building Cambodia’s national pride,” he said.
The CGCC’s investment in CAIC’s guaranteed bond came after local financial sectors – Wing Bank Plc, Alpha Commercial Bank, Prince Bank, FTB bank, ABA Bank, CPBank, and ACLEDA Bank.
CAIC is a joint venture between the Royal Government of Cambodia, represented by the State Secretariat of Civil Aviation, and OCIC, the largest investment group and local conglomerate in Cambodia.
The RGC has granted CAIC the rights to own, design, construct, finance, operate, maintain and manage Techo International Airport Project.
CGCC is operated under the technical and financial guidance of the Ministry of Economy and Finance. It was incorporated on November 3, 2020, and has been receiving technical support from the Asian Development Bank, World Bank and UNCDF.
Credit to: Khmer Times, 28 January 2022