Microlender reports strong performance after bond issuance on CSX

03 Jul 2019 2076 | Business & Trade Fairs

Microfinance institution Hattha Kaksekar Limited (HKL), the first firm to list bonds on the Cambodia Securities Exchange (CSX), reported a sharp increase in income in the first quarter of the year.

According to an interim financial report filed to CSX yesterday, HKL said total income exceeded $6 million in the quarter ending in March, a 50 percent hike compared to the same period last year.

HKL president and CEO Hout Ieng Tong told Khmer Times yesterday that the positive business performance is partially the result of greater access to capital which has allowed the firm to expand lending, particularly in the local currency.

“Our business performance was great during this quarter due to a stable economic and political situation.

“More importantly, thanks to our bond issuance at CSX we have had access to more resources and have been able to lend more,” he said.

In December, HKL became the first firm in Cambodia to issue bonds. 1.2 million bonds, worth 120 billion riel ($30 million), were issued. The bonds have a tenor of 3 years and the annual coupon rate ranges from 7.5 to 8.5 percent.

According to Mr Ieng Tong, the financial results will encourage more people to invest in bonds. “Our financial results are a very good sign for us and for those who bought our bonds. We hope to continue growing together with the national economy.”