Cambodia planning $100M in bond issue

THE government plans to issue a $100 million sovereign bond in 2024. The move aims to raise additional funds through the capital market to support public investment projects, while also repaying the principal and interest of previous issuances.

According to the Financial Management Law (FML) 2024, endorsed by King Norodom Sihamoni on December 11, the government is authorised to issue bonds totalling 440 billion riel (roughly $100 million). The funds are intended to repay portions of the 2022 bond issuance.

“The funds raised through the capital market will finance investment projects that can generate direct and rapid revenue. This ensures the sustainability of public investment and the efficient management of public debt and the national budget,” the FML stated.

Since 2022, the government, through the Ministry of Economy and Finance, has begun issuing sovereign bonds, selecting the National Bank of Cambodia Platform (NBCP) as an issuance agent. The ministry is also collaborating with the Cambodia Securities Exchange (CSX) to appoint the entity as another issuance broker.

Meas Soksensan, secretary of state at the finance ministry, said previously that the government issued bond offerings of $200 million in 2023 and $300 million in 2022. He emphasised that these amounts align with the limits set by the annual FML laws for their respective years.

Soksensan explained that, initially, sovereign securities could only be purchased in the primary market by entities such as banking and financial institutions, securities and insurance companies, the National Social Security Fund (NSSF) and similar organisations.

“Other investors, including the public, will soon be able to invest in sovereign securities on the secondary market, a development the

the visit, [Manet’s] primary goal is to seek economic benefits to bolster Cambodia’s economy towards continued prosperity,” he added.

Yang Peou, secretary-general of the Royal Academy of Cambodia, noted the significance of the visit, highlighting that as neighbouring countries with a shared border, comprehensive cooperation in all areas is crucial for the benefit of both.

“Given that the two countries are neighbours, any issues between them could lead to national insecurity, impede social development and create political problems,” he said.

“The two nations share not only a border but also a historical friendship, having supported each other in the past. Therefore, bilateral cooperation in all aspects is vital,” he added.

However, he believes that there are unresolved and imbalanced issues that the public is aware of and expects to be appropriately addressed.

“People have noted concerns such as illegal Vietnamese immigration into Cambodia, the establishment of checkpoints by Vietnam along the border during the Covid-19 pandemic and other bilateral issues. It’s crucial that these matters are resolved without breaching international treaties or the trust in their cooperation,” he said.