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Telcotech – the submarine fiber optic cabling company to list corporate bonds under CGIF scheme

Royal Group subsidiary – Telcotech Ltd – has received in-principle approval to be the seventh corporate bond on CSX. Cambodia Investment Review has been informed the bond will be available in USD however the exact coupon rate has not been disclosed. In addition the bond is speculated to be insured by the ADBs Credit Guarantee and Investment Facility.

According to the brokerage firm SBI Royal Securities, the full and verified details will be available on August 25. According to the company’s official profile, Telcotech Ltd launched in 2007 as a wholly-owned Cambodian company and was bought by the Royal Group in 2011.

The company has developed rapidly to accommodate international partnership commitments. Its says its key stakeholders have unrivaled knowledge and experience of business in Cambodia—inside and outside of the telecommunications industry as well as at an international level.

RMA (Cambodia) corporate bonds was one of the first CGIF companies under the scheme available in US dollars. The company listed in April last year with the issuance of 800,000 bonds at 100,000 riels each raising 80 billion riels ($20 million). The five-year amortised bond has a coupon rate of 5.5% per annum.

The Credit Guarantee and Investment Facility was established in November 2010 to promote financial stability and boost long-term investment in the region. The Credit Guarantee and Investment Facility will provide guarantees on local currency-denominated bonds issued by companies in the region.

Such guarantees will make it easier for firms to issue local bonds with longer maturities. This will help reduce the currency and maturity mismatches that caused the 1997-1998 Asian financial crisis and make the regional financial system more resilient to volatile global capital flows and external shocks.

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