GuarantCo provided a USD 50 million payment default guarantee to support a bond issuance by Daun Penh Agrico, a fully owned subsidiary of THACO Agri, the agriculture arm of Truong Hai Group Corporation (THACO).

The transaction is Cambodia’s first corporate bond in the agricultural sector and THACO’s first bond issuance outside of Vietnam.

The financing is structured in two phases. The first phase is a guaranteed bond issued with subscription from ABA Bank as both an anchor and first-time investor in GuarantCo-backed bonds. Prudential (Cambodia) and a second institutional investor closed out the subscription, with this bond being their third transaction with GuarantCo in Cambodia. Yuanta Securities acted as the sole lead manager for the guaranteed bond issuance.

The bond forms part of a financing package for the expansion of fruit production and agri-processing for bananas, pineapples and mangoes in Cambodia’s Ratanakiri province. The investment is expected to increase export-oriented production capacity.

THACO Agri is a significant regional producer operating through a circular farming model, where farm by-products feed livestock whose manure fertilises crops, creating a fully integrated cycle from cultivation to sales.

This transaction is also expected to support approximately 3,800 jobs in construction and operation, with c. 45 per cent of the operational workforce projected to be women.

The deal is strategically aligned to several United Nations’ Sustainable Development Goals including 2 (zero hunger), 5 (gender equality) and 8 (decent work and economic growth).