Power firm SchneiTec Dynamic (SchneiTec) has issued Cambodia’s first project bond, guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB).
The KHR196.64 billion ($49.2 million) issuance featured a 15-year tenor, making it the largest CGIF-guaranteed bond and longest-tenor bond transaction in Cambodia to date, according to a media release.
The issuance comprises three tranches: two CGIF-guaranteed green bonds: KHR60 billion with a floating rate coupon, which had foreign banks as investors, and KHR80 billion with a floating rate coupon featuring a floor and cap, which had insurers and a local bank as investors, as well as an unguaranteed green bond of KHR56.64 billion, which has foreign and local banks as investors.
The proceeds from this bond issuance will finance a 60MWac solar photovoltaic (PV) plant with an integrated battery energy storage system (BESS) in Kampong Chhnang province, Cambodia.
The bond has been developed under a build-own-operate (BOO) model, the project achieved commercial operation on October 31, 2024, and operates under a 20-year fixed-price, pay-as-produced Power Purchase Agreement (PPA) with Electricité Du Cambodge (EDC), backed by the Royal Government of Cambodia.
The bonds align with SchneiTec’s Green Bond Framework, which has been verified by Standard & Poor’s (S&P) as compliant with ICMA’s Green Bond Principles (2021) and the Asean Capital Markets Forum Green Bond Standards. Yuanta Securities (Cambodia) acted as the lead manager and underwriter for this transaction.
Hongwei Wang, chief executive officer of CGIF, said: “This isn’t just another bond issuance -- it’s a landmark moment for Cambodia. With CGIF’s support, it demonstrates that well-structured bonds can mobilise both domestic and foreign long-term capital for Cambodia’s critical infrastructure and sustainable development.”
Wang added: “The innovative multi-tranche structure expanded the investor base by catering to different risk appetites, attracting local and foreign banks as well as life insurance companies. CGIF's role extended beyond credit enhancement; we acted as the anchor creditor, leading due diligence, structuring, and documentation to align the transaction with international project finance standards.”
Dr. Heng Socheat, chairman of the SchneiTec Group, said: “It was tough. The bar was very high, and there are many strict requirements. But, we finally did it, thanks to the kind support and commitment from CGIF, SERC, CSX and all parties. We are proud to be a part of this first green project bond, and we believe it's just the beginning of our journey with capital market toward our goal to bring the Kingdom to the 70% of renewable energy by 2030 and carbon neutrality by 2050.”
Han Kyung Tae, managing director of Yuanta Securities (Cambodia), said: “With this issuance, we are setting a new benchmark for green financing in the country. I hope it will inspire more companies to explore sustainable funding options and, in turn, attract further investments into Cambodia’s growing capital market.”
