Daun Penh Agrico, a Cambodian subsidiary of Thaco Agri, has listed its bonds on the Cambodia Securities Exchange after raising US$50 million in the first tranche of a planned US$100 million program. The proceeds will be used to develop 7,376 hectares in Ratanakkiri province into a production and export base for bananas, mangoes, and pineapples.
Daun Penh Agrico Co Ltd, based in Lumphat district, is wholly owned by Thaco Agri, part of Vietnam's Truong Hai Group Corp. According to lead manager Yuanta Securities Cambodia Plc, the bonds were listed on the exchange this week following completion of the first issuance.
The investment is intended to expand plantation area and scale production to 272,000 tons by 2029, compared with the company's 2024 output. Export programs are targeted at markets including China and Japan.
The two-phase financing program, known as Project Tulip, aims to raise a total of US$100 million. The first tranche consisted of riel-denominated corporate bonds with a coupon rate of 5.25 per cent, an eight-year maturity, and a 24-month principal grace period. A total of 1.96 million bonds, each with a par value equivalent to US$25, were issued and fully subscribed by local life insurance companies, subsidiaries of international insurers, and one domestic bank.
Yuanta Securities chief executive Han Kyung Tae noted that the principal amount raised was slightly below US$50 million due to the structure of the GuarantCo guarantee. "Well, it's not exactly $50 million. The principal amount is $49 million due to how GuarantCo's guarantee works rather than due to the bond being undersubscribed," he said.
The bond carries an investment-grade rating from Rating Agency Cambodia and includes a 100 per cent unconditional guarantee by GuarantCo. According to Yuanta Securities, this is the first agriculture-focused bond issued on Cambodia's capital market.
Thaco Agri has agricultural operations in Vietnam, Cambodia, and Laos, and Daun Penh Agrico, established in 2015, is one of its core projects in Cambodia. The company operates mechanised fruit plantations and integrated production systems, including the reuse of agricultural byproducts for livestock feed and fertiliser.
A second bond issuance of US$50 million is expected later this quarter, completing the financing package. Cambodia Securities Exchange officials confirmed that Daun Penh Agrico received approval in principle following its listing eligibility review, marking another addition to the country's developing bond market.
Source: KiriPost
