The Royal Government of Cambodia plans to issue the first US$300 million worth sovereign bond to raise fund to finance public investment projects, aiming at boosting the country’s economic growth and productivity.
The Ministry of Economy and Finance released the executive summary of the Draft Law on Financial Management for 2022, approved in the cabinet meeting held here last Friday under the chairmanship of Prime Minister Samdech Akka Moha Sena Padei Techo Hun Sen.
The sovereign bond issuance is part of a reduction in foreign loans, with the government’s focus on mobilising financial sources domestically.
The fund from sovereign bond will add to concessional loans from development partners for 2022 of SDR 1.6 billion, or some US$2.2 billion, to support about 35 public investment projects related to energy, irrigation, physical infrastructure and other prioritised sectors.
The ministry stated that the issuance of sovereign bond and the above-mentioned loan will not create a debt burden on Cambodia. The situation of Cambodia’s public debt remains at low risk as key debt indicators is well below the respective indicative thresholds.
Source: Agency Kampuchea Press