$100 Million in Bonds to be Issued in 2024
Representation photo: ACLEDA Bank employees count local and US currency inside the bank in Phnom Penh on May 25, 2020. Photo: AFP
- By Ou Sokmean
- December 12, 2023 6:10 PM
PHNOM PENH – The government will issue $100 million in bonds for 2024 to raise additional funds from the capital market to sustain public investment projects. The issuance will be done through the National Bank of Cambodia.
The government allowed the issuance of 440,000 million riels, or approximately $100 million, in state securities to repay the principal and interest of state securities issued since 2022, stated the Financial Management Law 2024, approved on Dec. 7.
The Cambodian government issued $300 million in bonds in 2022 and $200 million in 2023 to finance public investment projects.
The State also sells securities to raise funds on the stock exchange to finance projects likely to provide rapid returns to the State to ensure efficient management of the public debt and the national budget.
In the second quarter of 2023, the public debt reached $10.72 billion, of which $10.67 billion (99.57 percent) was public external debt and $46.51 million (0.43 percent) was public domestic debt.
The government is also implementing a policy framework on developing state securities for the period 2023-2028 to assist Cambodia in obtaining new sources of financing.
The goal is to diversify sources of funding by raising capital on the Stock Exchange to meet public investment needs and contribute to the development of financial markets.
To achieve this goal by 2028, measures will be taken to build a strong and comprehensive management system for the issuance and assistance of securities.
The implementation of this new policy will be done in two phases.
In the first phase, running from 2023 to 2026, the government will establish a complete management system for the issuance and trading of state securities in the country.
During the second phase, in 2027-2028, the government will review and improve the management system for the issuance and trading of securities abroad.
Teng Yalirozy contributed to the story.
