Cambodia's best corporate and investment bank 2019: SBI Royal Securities
SBI Royal Securities
In its time, SBI Royal Securities has done more for Cambodia’s capital markets than any other bank or firm. It has introduced both equities and corporate bonds to the local market.
The Cambodia Securities Exchange is one of the quietest bourses in southeast Asia, with just five stocks listed. Three of those were sponsored by SBI Royal. The last and largest public offering was Sihanoukville Autonomous Port’s CR108.1 billion ($26.7 million) deal in June 2017, which was sole sponsored by the Japanese-owned securities firm.
Bringing bonds into the fold under the guidance of chief executive Shuzo Shikata, the firm opened Cambodia’s corporate bond market in November 2018 with a CR120 billion, 8.5% three-year issue by microfinance lender Hattha Kaksekar – a trade it spent a year developing.
In August, local lender ABA Bank listed the third bond on the CSX, a CR128 billion, three-year issue, also underwritten by SBI Royal. ABA’s bond pays a 7.75% coupon.
Shikata is a driving force behind the development of Cambodia’s corporate bond market, working with his team on diverse ideas for 2020 including the country’s first social bond. At the same time, the firm continues to work on bringing public offerings to the CSX.
While SBI Royal is a securities firm, it is not like others in the country, which are either small or focus primarily on brokerage. There are six firms with an underwriting licence, but only SBI Royal, Yuanta Securities and Phnom Penh Securities have experience, and SBI Royal has the most by far. Cambodia is still in need of a genuine investment bank, but in the meantime SBI Royal covers most of the services an investment bank would offer.