The transaction was celebrated with an official Bond Listing Ceremony at the Cambodia Securities Exchange (CSX) on 21st January. The event was presided over by H.E. Dr. HEAN Sahib, Secretary of State of the Ministry of Economy and Finance and Chairman of the CSX.
The bond forms part of a target USD 100 million financing package to fund the expansion of fruit production and agri-processing for bananas, pineapples and mangoes in Cambodia’s Ratanakiri province. The investment is expected to increase export-oriented production capacity. This transaction is also expected to support approximately 3,800 jobs in construction and operation, with c. 45 per cent of the operational workforce projected to be women.
The financing is structured in two phases. The first phase is a guaranteed bond issued with subscription from ABA Bank as both an anchor and first-time investor in GuarantCo-backed bonds. Prudential (Cambodia) and a second institutional investor closed out the subscription, with this bond being their third transaction with GuarantCo in Cambodia. Yuanta Securities acted as the sole lead manager for the guaranteed bond issuance.
THACO AGRI is a significant regional producer operating through a circular farming model, where farm by-products feed livestock whose manure fertilises crops, creating a fully integrated cycle from cultivation to sales.
THACO is one of the largest business groups in Vietnam with operations across six vertically integrated sectors: automotive, mechanics and supporting industries, real estate, logistics, commerce-service and agriculture. Its integrated operating model offers complementary services across these sectors, enabling end-to-end value chain integration.
Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:
“We are pleased to complete this transaction, GuarantCo’s fifth in Cambodia but its first in the country’s agricultural sector. With a 22 per cent share of gross domestic product in 2018, the agricultural sector continues to contribute to Cambodia’s economic growth although not to its full potential. Due to the nascency of the sector, private capital has not been available on the terms required. This bond deal will help expand and diversify the agri production and processing sector’s funding base by bringing in institutional investors and building local capacity in Cambodia.”
Mr. Tran Bao Son, General Director of THACO AGRI, said:
“As the first bond issuance in Cambodia’s agricultural sector, this transaction affirms the effectiveness of THACO AGRI’s large-scale integrated and circular model. It provides a strong foundation to scale up export-oriented fruit production and agri-processing in Cambodia, while fostering socio-economic growth in Ratanakiri province through sustainable job creation and enhancing the social well-being of our employees and their families, further advancing our vision of becoming a leading agricultural corporation in ASEAN.”
Mr. KT Han, Chief Executive Officer of Yuanta Securities (Cambodia), said:
“This transaction represents a major milestone for Cambodia’s capital markets as the country’s first corporate bond issuance in the agricultural sector. As Lead Manager, Yuanta Securities is pleased to have supported THACO AGRI in accessing Cambodia’s domestic institutional capital through a GuarantCo-backed structure. Leveraging our local market expertise and close coordination with regulators, investors, and key stakeholders, we successfully delivered another landmark bond issuance that supports both our clients’ long-term growth and Cambodia’s sustainable economic development. This transaction highlights the growing depth of the local bond market and sets an important precedent for future agricultural and guaranteed bond transactions in Cambodia.”
Mrs. Vuong Thi Huyen, Chairwoman of Fast Capital Solution Joint Stock Company, said:
“As the financial advisor, we were pleased to support THACO AGRI in structuring a bond issuance that aligns with the Company’s long-term agricultural cash flows with the requirements of institutional investors, while contributing to the development of Cambodia’s capital markets. The transaction also demonstrates strong collaboration among key stakeholders to achieve financial close, setting an important precedent for future agricultural and sustainable finance transactions in Cambodia.”
