The government bond issuance is scheduled to be made next month, the Ministry of Economy and Finance said, stressing that the first ever government bond in local disburse is to raise 1.2 trillion Riel (equivalent to US$300 million).

The bond is KHR 1,000,000 (approximately US$250) per share with maturity date period a year, three years, and five years, the ministry’s statement made public on Aug. 25 pointed out.

The issuance of a government bond is to complement the government’s financing from local investors instead of borrowing from abroad.

The government’s decision to issue government bond is to develop and strengthen the capital sector of Cambodia, as well as to raise capital from the private sector as much as possible.

The successful issuance of the securities will help the government to fund large infrastructure projects, such as roads, railways, and airports, said H.E. Hong Sok Hour, Chief Executive Officer of the Cambodia Securities Exchange.

“The Cambodian government now has access to funds from overseas partners. If the foreign sources of capital dwindle as Cambodia develops, we need to have our own sources of capital. Therefore, the issuance of government securities is a step to secure the future,” he underlined.

Launched in 2012, the Cambodia Securities Exchange (CSX) has a total of 16 listed companies, including nine equity firms and seven corporate bond firms, collecting a total capital of US$280 million.

The daily trading value of CSX hit an average of US$870,000 in the first semester of this year.

Source: Agency Kampuchea Press