03 July 2024

Cambodian telco CamGSM – which operates under the brand Cellcard – has earmarked US$180 million for network expansion for 2024, with a particular focus on extending coverage to underserved communities.

Cellcard CEO Simon Perkins said the network expansion plan has been approved by the Council for the Development of Cambodia (CDC) and reflects the company’s strategic focus on utilizing its recently obtained sustainability financing to achieve long-term growth and positive social impact.

“This US$180 million investment underscores Cellcard’s unwavering commitment to Cambodia’s digital development,” said Cellcard CEO Simon Perkins. “By expanding our network and focusing on the underserved communities, we aim to empower all Cambodians with the connectivity they need to thrive in the digital age.”

CamGSM launched the sustainability bond on the Cambodia Securities Exchange (CSX) in November 2023, with parent company Royal Group as the sole underwriter and financial advisor. Manulife and Prudential fully subscribed to the bond backed by a 100% guarantee from GuarantCo – a subsidiary of the Private Infrastructure Development Group (PIDG) – with the bond valued at US$20 million.

In January, CamGSM secured a US$70 million guaranteed loan from GuarantCo to support the sustainability bond. At the time, CamGSM said the money from both the bond and the GuarantCo loan would be allocated towards financing 4G telecoms towers, energy-efficient 4G equipment and future-proofing the network in preparation for its eventual 5G rollout.

Last month, CamGSM released its financial results for the first quarter of 2024, which reported a 66% year-on-year increase in after-tax profit, although this was mainly due to receiving a tax break in March from the government covering the period from 2023-2025, enabling CamGSM to reverse tax accrued.