ABA Bank is helping fund construction of Phnom Penh’s new international airport. It bought $30 million in bonds issued by Techo International Airport Construction Company.
Overseas Cambodian Investment Corporation (OCIC), Cambodia Airport Investment Company (CAIC) and ABA Bank representatives attended Tuesday’s signing ceremony.
The bond pays an annual interest rate of 5.5 percent over three years and is guaranteed by OCIC. The investment company specialises in infrastructure and real estate construction and management.
Along with the new airport OCIC has been involved in the development of Koh Pich, Koh Nora, Chroy Changvar satellite city and Olympia City.
CAIC is a joint venture between OCIC and the government’s Secretariat of State for Civil Aviation.
The government has authorised it to design, build, finance and operate the new airport, named Techo Krong Takhmao International Airport by Prime Minister Hun Sen last week.
The airport, in Kandal province, is currently 28 percent complete at a cost of $375 million, excluding the price of the land bought by CAIC. The airport is expected to be completed by 2025 with an estimated cost of $1.5 billion.
Last week Prime Minister Hun Sen said he wanted the airport to be built with local money and constructed by Cambodians, saying, “Khmer can do it.”
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