Cambodia Investment Review

Telcotech Achieves Historic Milestone with Second $20M Bond Listing on CSX

Telcotech Achieves Historic Milestone with Second $20M Bond Listing on CSX

Pat Olszewski

Telcotech Ltd, a leading provider of Fiber Optics Infrastructure and submarine networks and a subsidiary of the Royal Group of Companies Ltd, celebrated a momentous milestone with the successful listing of its second $20 million bond on the Cambodia Securities Exchange (CSX).

Telcotech’s commitment to technological advancement and connectivity took a significant leap with the listing of its second bond, following the success of its inaugural $20 million bond in September 2021. The achievement was commemorated at a lively event on January 19, 2024, witnessed by industry leaders, distinguished guests, including H.E. Dr. Hean Sahib, Secretary of State of the Ministry of Economy and Finance and Chairman of the Cambodia Securities Exchange, H.E Sou Socheat, Director General of Securities and Exchange Regulator of Cambodia,  H.E Hong Sok Hour, Director General of Securities and Exchange Regulator of Cambodia and Mr. Anuj Awasthi, Vice President Operations of Credit Guarantee & Investment Facility, and key participants, emphasizing Telcotech’s pivotal role in advancing Cambodia’s digital landscape.

H.E Sou Socheat, Director General of Securities and Exchange Regulator of Cambodia.

The $20 million bond is set to drive forward strategic initiatives that span from the expansion of the domestic network to the enhancement of nationwide service delivery. Some of the key programmes being the development of Cambodia border-to-border expressway, the establishment of RG Elite DC 1 – a state of the art Kampus data center, and more enhancement and optimization projects will further strengthen Telcotech’s position as a formidable competitor in the Indochina connectivity crossway, putting Cambodia on the map for the expansion of new markets within the region.

Anticipating significant advantages, Telcotech aims to capture a larger share of the domestic market, assert dominance in the inter-country connectivity sector, and penetrate untapped market areas. These objectives align with the broader goals of achieving cost optimization and sustainability. Telcotech maintains a steadfast commitment to cost-effective operations while minimizing environmental impact, ensuring a comprehensive and responsible approach to its strategic endeavors.

H.E. Dr. Hean Sahib, Secretary of State of the Ministry of Economy and Finance and Chairman of the Cambodia Securities Exchange.

Neak Okhna Kith Meng, Chairman and CEO of Royal Group of Companies, expressed profound optimism, remarking, “After the issuance of our first CGIF-guaranteed KHR bond offered through private placement in Cambodia, we’re proud to have the backing of CGIF again on Telcotech’s second public bond, which we believe will provide investors with a competitive advantage. Together, we hold on to Telcotech’s ambitious goals in dedicating our effort to foster a more connected, prosperous, and sustainable Indochina. I eagerly anticipate the unfolding of an increasingly expansive digital future enabled by this bond.”

[Dylan Quah], [Deputy CEO] of Telcotech, shared his insights, stating, “Telcotech Ltd’s Public Bond is a game-changer, positioning the company as a dominant force in Indochina’s connectivity crossway. This strategic move is geared towards securing a larger share of the international and domestic wholesale market while supporting Telcotech’s ambitious growth plans.”

Investor Subscription Success: A Flashback to Growth’s Foundation

Stepping back to the waning days of 2023, Telcotech Ltd. (TCT) and Royal Group Securities Plc. (RGS) joyfully revisit the successful conclusion of the Telcotech Public bond subscription, held from the 27th to the 28th of December. In those critical moments, the resonance of accomplishment echoed profoundly, with a remarkable 820,800 bonds finding their place among esteemed investors. The subscription results, having garnered the seal of approval from the Securities and Exchange Regulator of Cambodia (CSX) and the steadfast support of the dedicated Telcotech Public Bond advisors, stand as a testament to the collective triumph achieved.

Mr. Seng Chan Thoeun, Chief Executive Officer of Royal Group Securities Plc. stated, “We are pleased to offer our exceptional expertise in capital raising, standing as the sole financial advisor and underwriter for the highly anticipated Telcotech Second Public Bond listed on the Cambodia Securities Exchange. The Bond has astoundingly captured the attention and participation of distinguished overseas investors, affirming the international recognition and credibility of Telcotech’s business operations. The presence of esteemed investors further emphasizes the unwavering confidence placed in Telcotech’s future prospects and the tremendous potential of Cambodia Capital Market.”

H.E Hong Sok Hour, Director General of Securities and Exchange Regulator of Cambodia.

Embarking on this introspective journey through time, let’s take a moment to heed the voices that believed in the Telcotech vision. Jean-Christophe Levens, Head of International Finance and Advisory of BRED, one of our esteemed investors, shared their perspective, stating, “By investing into Telcotech bonds, guaranteed by CGIF, BRED is proud to support the continuous growth of a leading local company in a critical sector for Cambodia, and the development of a vibrant capital market in Cambodia. We express our gratitude to Royal Group and CSX for this opportunity and are confident that this issuance will pave the path for many more. BRED is a leading French bank, established since 2017 in Cambodia through BRED Bank Cambodia, and a growing actor for the financing of key sectors and companies in the country.” Further contributing to this reflective discourse, Mr. Bonsup Koo, Director of KEXIM ASIA LIMITED, remarked, “It is remarkable that we completed international bond subscription with International Financial Institution, state owned bank and private company. This deal paves the way to the advanced financial market and will be best practice to other regional companies. In addition, we are willing to find more opportunities with CGIF, regional conglomerates and spur to arrange tailor made deals.” These expressions of confidence from our distinguished investors resonate as echoes from the past, underscoring the strategic importance of Telcotech’s endeavors and illuminating its promising trajectory in the industry.

As Telcotech continues to pioneer transformative journeys, the second bond listing serves as a strategic leap towards reshaping the telecommunications landscape in Indochina. Beyond financial growth, this bond symbolizes Telcotech’s commitment to innovation, sustainability, and its role as a catalyst for progress in the region.

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