Bun & Associates was the lead counsel to GuarantCo Ltd (GuarantCo), part of the of the Private Infrastructure Development Group (PIDG), on a USD 24 million guarantee for an innovative dual tranche bond issued by Royal Railway Cambodia.
The features of this bond have the potential to be transformational in facilitating future infrastructure funding through domestic capital markets in the country. The issuance introduces the first rated bonds in Cambodia, and it is also the first-time where multi-tranche, variable rate bonds are issued in the country.
Proceeds of the bond, which is rated AAA by Rating Agency of (Cambodia) Plc, will be utilised to purchase new trains and finance renewal, and upgrades of the country’s railway network. The financing is expected to increase Royal Railway’s capacity and efficiency to cater for the large unmet demand for freight and public services in Cambodia. Royal Railway is the exclusive national railway operator in Cambodia.
GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, France through a stand-by facility and Global Affairs Canada through a repayable facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development.
Youdy BUN, Managing partner and Sinath UN, partner, were the team co-leads. Daraboth KIM, Senior Associate, coordinated the team and played a key role in the negotiations.
Youdy commented: ‘We are very proud to have played a lead role in this important transaction. The successful issuance marks a significant step in the ongoing development of Cambodia and the country’s infrastructure’
"We congratulate GuarantCo and Royal Railway on their achievement. I would like to express my thanks to our team for their hard work and dedication on this landmark transaction", added Sinath UN.
About Bun & Associates
Bun & Associates is Cambodia’s leading corporate and business advisory law firm.
For over 15 years, we have been at the centre of the deals, policies and legislation that have transformed Cambodia.
Our legal and tax specialists are multilingual and have trained with leading firms in Asia, Europe and North America. Qualified in both civil and common law jurisdictions, their advice combines global perspectives with an understanding of local markets.
Bun & Associates is the ‘firm of choice’ for leading regional and multinational businesses, governments, state-owned entities and international organizations.
Recent experience
Bun & Associates played a key role in the creation of Cambodian bond market.
-in late 2018, we advised Hattha Kaksekar, on the first bond issuance in Cambodia
- in early 2020, we advised RMA Cambodia on a US$20 million fixed-rate amortizing bond issuance in April, 2020. This was the first bond issuance in Cambodia by a non-financial institution
Media contact information
For further information please contact:
Boranin RATH
Business Development Manager
M: +855 (0) 69 555 911
E: rath.boranin@bun-associates.com
