Cambodia Investment Review
Yuanta Securities (Cambodia) has successfully completed the issuance of Cambodia’s first-ever project bond—a landmark USD 50 million green bond aimed at supporting the country’s growing solar power infrastructure. Scheduled to be listed on the Cambodia Securities Exchange on April 10, 2025, the transaction marks a pivotal moment in the development of sustainable finance and the domestic bond market.
This innovative financial instrument is expected to strengthen investor confidence and catalyze further capital inflows into the Kingdom’s renewable energy sector.
Dual-tranche structure attracts global investor interest
The bond was structured in two tranches: one tranche is guaranteed by the Credit Guarantee and Investment Facility (CGIF), while the other is unguaranteed. The structure was designed to meet the risk-return profiles of a diverse group of investors and ultimately succeeded in drawing participation from leading life insurance companies, an overseas export credit agency, several major international commercial banks, and a well-known Cambodian bank.
Han Kyung Tae, CEO of Yuanta Securities (Cambodia), described the deal as a significant step forward for both the renewable energy sector and Cambodia’s financial markets.
“This project bond is more than just a financial instrument—it marks a significant milestone for both Cambodia’s bond market and the renewable energy sector,” he said. “By pioneering this bond structure, we are opening doors to further investments in renewable energy projects, which are essential for sustainable economic growth.”
Supporting Cambodia’s solar ambitions
The proceeds from the bond will be used by SchneiTec Dynamic and SchneiTec Group, Cambodia’s largest and most active solar power developer, to accelerate the expansion of solar energy capacity across the country. The initiative supports national goals of increasing energy independence while transitioning to cleaner sources of power.
Sim Dara, Managing Director of Yuanta Securities (Cambodia), noted that the project reinforces the company’s commitment to sustainable investment strategies. “Yuanta’s role as the architect of this deal reflects our deep commitment to sustainable finance. We are proud to have played a key role in delivering a solution that benefits both investors and the broader goals of the Cambodian renewable energy sector,” he said.
Simon Park, Head of Investment Banking at Yuanta Securities, added that the project highlights the company’s ability to introduce financial innovations tailored for local development needs. “We are excited to see how this project will pave the way for future investments and contribute to a greener Cambodian economy,” he said.
Boosting Cambodia’s position in green finance
The successful issuance also highlights Cambodia’s increasing attractiveness as a destination for green investment. It demonstrates how financial innovation can support sustainable development objectives, while simultaneously creating value for both local and international stakeholders.
“As more investors recognize the opportunities in Cambodia’s renewable energy sector, we anticipate increased capital inflows that will drive additional green projects,” said Han.
The green bond issuance is being closely watched as a potential model for future infrastructure and clean energy financing in the Kingdom. It also reflects broader regional trends, with Southeast Asia increasingly looking to green finance as a vehicle to support climate-resilient development.
Yuanta Securities (Cambodia), a subsidiary of the regional Yuanta Group, has positioned itself at the forefront of financial market innovation in the country. This latest achievement further underscores its leadership in aligning capital market activities with sustainable development goals.
The listing on the Cambodia Securities Exchange on April 10, 2025 is expected to set a precedent for similar issuances and encourage the growth of a deeper, more diversified bond market in the Kingdom.
