Cambodia Investment Review
In last than a year’s time, Cambodia will have a new iconic infrastructure and landmark which all Cambodian will be proud of; the Techo International Airport (“TIA”).
TIA is developed by Cambodia Airport Investment Co., Ltd. (“CAIC”), a joint venture between the Cambodian conglomerate Overseas Cambodia Investment Corporation and the Cambodian Government represented by the State Secretariat of Civil Aviation.
Satellite Terminal Across A Total Land Area Of 2,600 Hectares
TIA (Phase 1) is a greenfield airport being developed in southern Phnom Penh, about 19km from Phnom Penh City Centre, with a total investment of USD1.5 billion. TIA, to be developed in three phases, is designed for 50 million passengers, with three runways and a satellite terminal across a total land area of 2,600 hectares.
For TIA Phase 1, the project has been funded by a combination of equity and debt. To optimize the financing structure, CAIC had leverage on both debt (bank loans) and Capital Markets (Bonds) for its financing requirements.
$378+ Million Of Bonds For Tenors Of Up To 3 Years
To-date, CAIC has issued USD378.8 million of Bonds for tenors of up to 3 years and has received strong demand and support from both local and foreign investors. These bond investors comprise local & foreign owned financial institutions, insurance companies and individual foreign investors. There is also a foreign owned insurance company which invested for 10-year Bonds.
The bond investments from individual foreign investors are a further testament of the strong repute and credit standing of CAIC’s shareholders and investment attractiveness of this iconic infrastructure project. The individual investors are from diverse countries and background, such as Korea, Taiwan and Singapore and comprises prominent individuals such as Dr Tan Chong Koay; a renowned investment fund manager.
TIA is due for commercial operations by the middle of 2025.