Royal Railways Cambodia

Royal Railways Cambodia - Bond

Industry
Infrastructure/Rail
Area of finance
Development Bank Finance
Region
Asia Pacific
Countries
Cambodia

Deal Overview

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a USD 24 million guarantee for an innovative dual tranche bond issued by Royal Railway Cambodia, split equally between 5 years and 10 years. The features of this bond have the potential to be transformational in...

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GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a USD 24 million guarantee for an innovative dual tranche bond issued by Royal Railway Cambodia, split equally between 5 years and 10 years. The features of this bond have the potential to be transformational in facilitating future infrastructure funding through domestic capital markets in the country. The bond investors included Prudential (Cambodia) Life Assurance PLC and Manulife (Cambodia) PLC. SBI Royal Securities, a leading securities firm in Cambodia, acted as the sole mandated lead arranger of the bond.

Proceeds of the bond, which is rated AAA by Rating Agency of (Cambodia) PLC, will be utilised to purchase new trains and finance renewal, and upgrades of the country’s railway network. The financing is expected to increase Royal Railway’s capacity and efficiency to cater for the large unmet demand for freight and public services in Cambodia. Given the underdeveloped road network, Royal Railway’s freight services will ensure seamless, efficient and fast movement of goods across Cambodia.

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Deal Volume
$ 24m
Financial Close
05 January 2023
Sources
Press release

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