Cambodia Investment Review
SchneiTec Dynamic has successfully listed a 15-year green bond worth KHR 196.64 billion (approximately USD 49.16 million) on the Cambodia Securities Exchange (CSX), with the proceeds set to finance the construction of a 60-megawatt solar photovoltaic power plant in Kampong Chhnang province.
The bond issuance marks a significant step in Cambodia’s sustainable finance landscape and is a milestone under the Cambodia Sustainable Bond Accelerator (CSBA) program, jointly led by the Securities and Exchange Regulator of Cambodia (SERC), the Global Green Growth Institute (GGGI), and the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP), with support from the Credit Guarantee and Investment Facility (CGIF) and GuarantCo.
Multi-Tranche Issuance with Blended Finance Approach
The green bond is structured into three tranches:
- KHR 60 billion (~USD 15 million) CGIF-guaranteed bond with a floating rate,
- KHR 80 billion (~USD 20 million) CGIF-guaranteed bond with a capped and floored floating rate, and
- KHR 56.64 billion (~USD 14.16 million) unguaranteed tranche.
CGIF played a central role in the structuring of the transaction and served as both the anchor creditor and credit enhancement provider. The innovative multi-tranche design was instrumental in attracting a diverse pool of domestic and international investors, including local banks and insurance companies, by catering to different risk appetites.
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“This isn’t just another bond issuance—it’s a landmark moment for Cambodia,” said CGIF CEO Hongwei Wang. “This structure can now serve as a blueprint for other frontier markets in the ASEAN region.”
Clean Energy Milestone and Green Impact
The Kampong Chhnang solar power plant will generate approximately 130 GWh of clean electricity per year and is expected to reduce greenhouse gas emissions by over 85,000 metric tons of CO₂ equivalent annually. The project is also anticipated to create more than 450 green jobs during its lifecycle.
SchneiTec Dynamic CEO Dr. Heng Socheat stated that the successful listing enhances the company’s ability to access capital markets and further scale its renewable energy portfolio. “This is a key step toward expanding our clean energy solutions and contributing to a more sustainable energy future for Cambodia,” he said.
Institutional Backing and Regulatory Endorsement
H.E. Sou Socheat, Director General of SERC, emphasized the significance of the issuance in demonstrating investor confidence and advancing the country’s capital market development. “This reflects our commitment to supporting investments that drive both social and environmental progress,” he said.
The issuance was supported by several development partners including UN ESCAP, GGGI, GuarantCo, and the Government of Luxembourg. These organizations provided technical assistance, training, and investment facilitation through the CSBA program. ESCAP’s Director of Macroeconomic Policy, Hamza Ali Malik, called it “a landmark green bond issuance” and highlighted the role of blended finance in accelerating climate action in Cambodia.
GGGI Country Representative Shomi Kim noted that the issuance aligns with global standards and helps set a precedent for future green bond issuers in Cambodia. The green bond received a ‘Dark Green’ rating under S&P Global’s “Shades of Green” methodology, highlighting its strong alignment with long-term climate goals.
Strengthening Cambodia’s Green Finance Ecosystem
This issuance follows the first green bond listed last year by Royal Group Phnom Penh SEZ and marks the second under the CSBA initiative. The CSBA, launched in 2023, aims to promote green, social, and sustainability-linked bond issuances by offering technical guidance, cost-sharing support for second-party opinions, and access to credit enhancement.
The bond is aligned with the Green Bond Principles of the International Capital Market Association (ICMA), the ASEAN Green Bond Standards (GBS), and SERC’s guidelines. The framework is designed to ensure transparency, environmental integrity, and adherence to best practices.
As Cambodia continues its push toward renewable energy and sustainable finance, the successful issuance of SchneiTec Dynamic’s green bond highlights growing investor interest in climate-friendly infrastructure and the maturation of Cambodia’s capital markets.
The official listing ceremony was held at CSX and included remarks from senior officials including H.E. Dr. Hean Sahib, Secretary of State at the Ministry of Economy and Finance, and representatives from development partners and regulatory bodies.
