MICROCAPITAL BRIEF: Hattha Kaksekar Limited (HKL) Approved to Issue $20m in Bonds to Support Microfinance in Cambodia

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 (USD 19.7 million) with the possibility of an increase of KHR 40 billion (USD 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 USD 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 USD 2.5 trillion as of 2016. With this most recent injection of cash, HKL’s total capital reached USD 150 million.

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

By Michelle Fleming, Research Associate

Sources and Additional Resources

Khmer Times: HKL to Issue Cambodia’s First Bond
https://www.khmertimeskh.com/50526748/hkl-to-issue-cambodias-first-bond/

The Phnom Penh Post: WB proposes Cambodia’s 1st corporate bonds issue
https://www.phnompenhpost.com/business/wb-proposes-cambodias-1st-corporate-bonds-issue

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

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