Yuanta Securities (Cambodia) Plc has issued an agriculture-focused corporate bond in Cambodia aimed at financing large-scale fruit export production. The first tranche totals US$50 million and forms part of a broader US$100 million fundraising plan. The proceeds are earmarked for the development of a 7,376-hectare farm in Ratanakiri province, targeting banana, mango, and pineapple exports.
According to an announcement from Yuanta Securities (Cambodia) Plc, the issuance marks the completion of Project Tulip, described as the first agriculture-focused corporate bond listed on the Cambodia Securities Exchange. The transaction reflects a diversification of capital market instruments toward primary agricultural production and export-oriented projects.
The US$50 million bond represents the first phase of a two-step financing structure. It carries a 100 per cent unconditional guarantee from GuarantCo, a provider of local currency credit solutions for infrastructure-related investments. GuarantCo holds credit ratings of A1 from Moody's and AA- from Fitch. The second phase, scheduled for the first quarter of 2026, is planned as a US$50 million secured loan with a 200 per cent security coverage ratio.
Capital raised through the bond will support the expansion of the 7,376-hectare farm operated by Daun Penh Agrico in Ratanakiri. The project targets export markets including China and Japan. By 2029, production is projected to reach 272,000 tons, representing a substantial increase compared with last year's reported output.
Alongside production expansion, Daun Penh Agrico and associated companies plan to apply a circular agriculture model. Under this approach, crop residues and byproducts are to be reused as livestock feed and organic fertiliser, linking crop production with secondary agricultural activities and reducing waste streams at the farm level. The model aligns with Environmental, Social, and Governance frameworks applied in export-oriented supply chains.
Yuanta Securities acted as lead manager for the bond issuance, structuring the transaction to connect agricultural production assets with capital market financing mechanisms.
Han Kyungtae, CEO of Yuanta Securities (Cambodia) Plc, said, "Today's launch is more than just a successful capital raise. It is a powerful testament to the untapped potential of Cambodia's agriculture sector."
"By bridging the gap between the soil and the securities market, we are demonstrating that Cambodia's vast natural resources, when paired with international-standard financing, can compete on a global stage."
"This bond proves that our agricultural industry is no longer just a traditional pillar of the economy, but a sophisticated, high-growth frontier ready for institutional investment," he added.
The project positions Cambodian fruit production within a framework that combines export-oriented horticulture, farm-scale development, and structured financing through domestic capital markets.
Source: Khmer Times
