Domestic Bonds

Government bonds suspended until further notice: official

Plans for Cambodia’s inaugural sovereign bond issuance worth $300 million have been postponed until further notice from their original date of late June due to technical issues, according to a spokesperson for the government. Ministry of Finance.

Government securities, including bonds, are a vital financial tool for governments to raise funds from the domestic and foreign private sector for socio-economic development, according to a press release on the Senate session which approved the Public Securities Bill.

Without providing an estimated turnaround time, Ministry of Economy and Finance spokesman Meas Soksensan told The Post that a technical team under the ministry is currently working on a number of remaining issues before the bond issue can go ahead.

The managing director of the Securities and Exchange Regulator of Cambodia (SERC), Sou Socheat, told the Post on June 29 that other countries are diversifying their sources of debt funding and issuing government bonds to sell to domestic investors. and foreigners for economic development.

He said government bonds provide a benchmark for corporate debt, especially for pricing decisions, and a host of other benefits that can support the securities market.

Speaking at a forum in mid-May, Economy and Finance Minister Aun Pornmoniroth said, “Government bonds are expected to be popular on the Cambodia Stock Exchange. [CSX] and provide benchmark data for corporate securities trading and financial analysis as implemented in countries with growing securities industries.

At present, a total of 16 companies are listed on the Cambodia Stock Exchange (CSX) – nine companies have issued shares in the Main Board and the Growth Board – and seven companies have listed their bonds. As of February 9, the companies had raised a total of $281 million.