MICROCAPITAL BRIEF: First Bond Issue Ever on Cambodian Securities Exchange Is by Microfinance Institution Hattha Kaksekar Limited (HKL) to Benefit Farmers, Other Rural Entrepreneurs

With encouragement from the Cambodian government, microfinance institution Hattha Kaksekar Limited (HKL) recently issued the first corporate bonds ever on the Cambodian Securities Exchange (CSX). The issue raised the USD equivalent of 30 million for HKL, a subsidiary of Thailand’s Bank of Ayudhya, which is also known as Krungsri. The International Finance Corporation (IFC), a member of the World Bank Group, purchased 800,000 of the 1.2 million bonds issued. The funds are slated for on-lending in local currency to rural farmers and entrepreneurs, mostly women.

As of June 2018, HKL’s total assets stood at USD 804 million, with a credit portfolio of USD 660 million serving 135,000 borrowers and deposits of USD 409 million held for 228,000 depositors.

Founded in 1945, Bank of Ayudhya is a member of Japan’s Mitsubishi UFJ Financial Group. As of 2017, it reported total assets of THB 2.1 trillion (USD 70 billion), a gross loan portfolio of THB 1.6 trillion (USD 49 billion) and customer deposits of THB 1.3 trillion (USD 40 billion).

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2017, IFC reports total assets of USD 92.3 billion, and it has 184 member countries.

By Michelle Fleming, Research Associate

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/35EB8EC8FBEE896685258366002ECCE7

Business Times article
https://www.businesstimes.com.sg/opinion/markets-in-cambodia-cheer-first-bond-issue

HKL homepage
https://www.hkl.com.kh

Ayudhya homepage
https://www.krungsri.com

Ayudhya financial information
https://www.krungsri.com/bank/getmedia/d6e54be0-aeb3-412a-ae11-8b779ca777b6/Factsheet-Krungsri-group-2Q18-E-Compatibility-Mode.pdf.aspx

IFC homepage
https://www.ifc.org

World Bank homepage
https://www.worldbank.org

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https://www.microcapital.org/microcapital-brief-voyager-innovations-of-the-philippines-raises-215m-in-equity-from-tencent-kkr-ifc-to-bring-digital-financial-services-to-rural-areas/

MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) Approved to Issue $20m in Bonds to Support Microfinance in Cambodia
https://www.microcapital.org/microcapital-brief-hattha-kaksekar-limited-hkl-approved-to-issue-20m-in-bonds-to-support-microfinance-in-cambodia/

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