SchneiTec Dynamic Company, one of Cambodia’s prominent energy infrastructure companies, issued the country’s first-ever project bond amounting to 196.64 billion riels ( US$49.16 million ) backed by a guarantee provided by the Credit Guarantee & Investment Facility ( CGIF ), a trust fund of the Asian Development Bank ( ADB ).

This landmark 15-year deal, announced on April 11, is the largest CGIF-guaranteed bond and longest-tenor bond transaction in Cambodia to date.

The issuance comprises three tranches: two CGIF-guaranteed green bonds totalling 60 billion with a floating rate coupon and 80 billion riels with a floating rate coupon featuring a floor and a cap. The third tranche is an unguaranteed green bond amounting to 56.64 billion riels.

The proceeds from the bond issuance will finance a 60-megawatt alternate current ( MWac ) solar photovoltaic plant with an integrated battery energy storage system in Kampong Chhnang province in Cambodia.

International standards

Developed under a build-own-operate model, the project achieved commercial operation on October 31 2024, and operates under a 20-year fixed-price, pay-as-produced power purchase agreement with Electricité Du Cambodge ( EDC ), backed by the Royal Government of Cambodia.

The bonds are aligned with SchneiTec’s green bond framework, which has been verified by Standard & Poor’s as compliant with the International Capital Market Association’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.

CGIF chief executive officer Hongwei Wang describes the issuance as a landmark moment for Cambodia. He says: “With CGIF’s support, it demonstrates that well-structured bonds can mobilize both domestic and foreign long-term capital for Cambodia’s critical infrastructure and sustainable development. 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.”

Wang says CGIF's role in the deal 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.” he says. “This approach instilled confidence among offshore and onshore investors, enabling their participation in the unguaranteed tranche despite perceived country risks in Cambodia. With this success, we believe this structure can be replicated in other frontier markets across Asean”.

Stringent requirements

Commenting on the deal, SchneiTec Group chairman Heng Socheat says:  “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, Securities and Exchange Regulator of Cambodia, Cambodia Securities Exchange, and all other parties.”

The green project bond is part of Cambodia’s journey to achieve 70% renewable energy by 2030 and carbon neutrality by 2050, he adds.

Yuanta Securities ( Cambodia ) managing director Han Kyung Tae describes the listing of the green project bonds as a crucial step towards fostering sustainable investments in Cambodia.

“With this issuance, we are setting a new benchmark for green financing in the country,” he points out. “I hope it will inspire more companies to explore sustainable funding options and, in turn, attract further investments into Cambodia’s growing capital market.”