Cambodia Investment Review

CIA First International School Raises $10M With CGIF-Guaranteed Bond at 6.3% Coupon Rate on CSX

CIA First International School Raises $10M With CGIF-Guaranteed Bond at 6.3% Coupon Rate on CSX

Cambodia Investment Review

CIA First International School has successfully raised $10 million through the listing of the 11th corporate bond on the Cambodia Securities Exchange (CSX). The bond, named “CIA First Guarantee Bond 1,” not only carries the prestige of a KhAAA rating, the highest under the country rating code, but also boasts a significant Credit Guarantee and Investment Facility (CGIF) guarantee and a fair 6.3 percent per annum coupon rate.

This achievement positions CIA First International School as the second firm from the education sector to be listed on the local bourse. The CSX’s approval in principle, announced on November 29, set the stage for the school to seek further approval from the Securities and Exchange Regulator of Cambodia (SERC).

Regulator’s Commitment To Expediting The Listing Process

Hong Sok Hour, CEO of the CSX, confirmed on December 4 that the school was working diligently with SERC to obtain listing approval on the bourse. “We believe that the company will soon complete the remaining work, enabling them to list by year’s end. The issuance is intended for qualified investors, which simplifies their preparation process,” he stated.

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SERC director-general Sou Socheat, anticipating approval before the end of 2023 also emphasized the regulator’s commitment to expediting the process. This timeline allows CIA First International School ample time to manage subscriptions before the planned listing on the bourse.

Established in 2016 in Phnom Penh, CIA FIRST operates three campuses offering education from kindergarten to grade 12. With more than five thousand students across its campuses, the school is currently building its fourth campus in the capital, scheduled to operate in 2025.

CIA First International School in Phnom Penh.

The CSX’s announcement highlighted CIA FIRST as the third school to receive approval in principle for bond listing eligibility review this year. The exchange, boasting a total of 21 listed firms, including 11 stocks and 10 corporate bonds, has collectively raised $349 million.

CIA First International School’s bond listing follows the successful debut of Mengly J Quach Education Plc (MJQE) in June 2023, which raised over $5 million through its initial public offering (IPO). H.E. Hong Sok Hour, CEO of CSX, remarked that 2023 witnessed the highest number of listed companies, including two equity securities and three corporate bonds.

Milestone For The School And The Private Education Sector

Oknha Dr. Trang Ly, Chairman of the Board of Directors of CIA First International, emphasized that the bond listing is a significant milestone for the school and the private education sector. The funds raised through this listing, guaranteed by CGIF, will support the expansion and enhancement of the education company’s business operations, as well as the development of new infrastructure.

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Acquired by Navis Capital Partners in 2020, CIA FIRST has experienced remarkable growth since its establishment in 2004 with only 17 students. The school provides education from kindergarten to 12th grade, with plans to open its fourth campus in 2025.

As of November 2023, the CSX has seen an average daily trading volume of around 130,000 shares, with an average daily trading value of approximately $210,000. The number of trading accounts has also experienced considerable growth, reaching 47,000 as of December 2023, on track for a target of approximately 50,000 by the end of the end 2023. The CSX aims to reach 100,000 trading accounts by 2024, with an average daily trading value of $100 million by 2030.

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