Cambodia: Hattha Kaksekar Limited Approved to Issue $20 Million in Bonds to Support Microfinance

Having received approval from the Securities and Exchange Commission of Cambodia, Hattha Kaksekar Limited (HKL), a Cambodian microfinance institution, is set to become the first company in the country to issue corporate bonds. The initial offering will be for KHR 80 billion ($19.7 million) with the possibility of an increase of KHR 40 billion ($9.9 million) depending on demand. HKL plans to use the proceeds from the bond sale to support micro-, small and medium-sized enterprises (MSMEs) in rural areas.

In August 2018, HKL received an equity investment of $45 million from the Bank of Ayudhya (Krungsri), its Thailand-based parent company. Bank of Ayudhya, in turn, is a member of Mitsubishi UFJ Financial Group, a Japanese banking group with assets of $2.5 trillion as of 2016. With this most recent injection of cash, HKL’s total capital reached $150 million.