The Kingdom’s first green bond is not accepted by the government

Phnom Penh’s VTrust Tower – owned by GT – received Cambodia’s first EDGE (Excellence in Design for Greater Efficiencies) green building certification for commercial office projects by the IFC on October 8. Photo provided

The government has agreed in principle to allow Golden Tree Co Ltd (GT) to list a “green bond” of around $3 million on the Cambodia Stock Exchange (CSX) which has been certified as compliant with the standards of the ASEAN, through a show CSX officials said they could run as soon as next month.

The Board of the Non-Banking Financial Services Authority (NBFSA) gave the nod in principle to GT on October 12, a week after CSX did the same. The company must now complete a set of formal issuance procedures, as specified by the Securities and Exchange Regulator of Cambodia (SERC).

The SERC commented in a statement that the green bond would be the first of its kind in the Kingdom and described GT as a veteran in areas such as commercial office space leasing, property management and real estate consultancy. .

CSX CEO Hong Sok Hour told the Post last week that the green bond is expected to carry a seven percent coupon rate and a five-year term. He also suggested that the debt security could be issued as early as November.

According to SERC Managing Director Sou Socheat, the green bond’s compliance with ASEAN standards and other eligibility requirements has been certified by the Asian Development Bank (ADB).

Socheat told the Post on Oct. 16 that the NBFSA’s decision clears the way for GT to continue the listing process, which he pointed out requires the company to issue notices of key dates.

“The issuance of green bonds represents the next step in the development of our securities industry, which means that from now on we will not only have ordinary bonds, but also green bonds in line with ASEAN principles.

“Once listed on the stock exchange, the company will receive the ASEAN Green Bond label, promoting its name throughout ASEAN,” he said in the statement, believing that the company would be better able to persuade investors. foreign players to invest in its future projects, or in the green sector in general.

On October 8, the International Finance Corporation (IFC), a member of the World Bank Group, awarded Cambodia’s first EDGE (Excellence in Design for Greater Efficiencies) green building certification for commercial office projects at VTrust Tower in Phnom Penh, which belongs to GT.

Speaking at the award ceremony, GT Executive Vice President Judy Tan said the international certification was a testament to her company’s dedication to aligning with the government to reduce CO2 emissions.

“Beyond environmental stewardship, GT is also committed to [the] ESG [environmental, social and governance] Standard. We would like to do more, continue to improve on the ESG issues that we and the industry as a whole are currently facing.

“We believe this initiative would help us design and implement long-term, sustainable policies that can support GT’s growth and strengthen our competitive advantages in terms of improving risk management, quality of service and operational excellence for our tenants, teammates, partners and all stakeholders,” she said.

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