GuarantCo provided Royal Railway with a USD 24 million bond guarantee to invest in the national railway system
GuarantCo provided a USD 24 million guarantee for an innovative dual tranche bond issued by Royal Railway, split equally between 5 years and 10 years. The features of this bond have the potential to be transformational in facilitating future infrastructure funding through domestic capital markets in the country. The bond investors included Prudential (Cambodia) Life Assurance PLC and Manulife (Cambodia) PLC. SBI Royal Securities, a leading securities firm in Cambodia, acted as the sole mandated lead arranger of the bond. It is the first floating-rate 10-year bond subscribed by domestic insurance companies and the first listed infrastructure bond in Cambodia.
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. Given the underdeveloped road network, Royal Railway’s freight services will ensure seamless, efficient and fast movement of goods across Cambodia.