Cambodia Launches Offering of Infrastructure Debt Securities

• Sommana Yan
• 24 July 2025
• Uncategorized
• 1690 Views

Cambodia has launched the Offering of Infrastructure Debt Securities, marking a significant step to unlock funding for critical infrastructure projects, including roads and bridges, across the nation.

The official launch occurred during a workshop on July 22, titled “Public Awareness on the Implementation of the Prakas on the Offering of Infrastructure Debt Securities and Guidelines on Eligible Assets for the Offering of Infrastructure Debt Securities,” held at the Hyatt Regency Phnom Penh.

This new regulation will enable both public and private companies to raise long-term capital for infrastructure development through bond issuance, which is an important advancement toward establishing a more resilient, market-driven economy. Developed by the Securities and Exchange Regulator of Cambodia (SERC) and supported by Australia through the Cambodia Australia Partnership for Resilient Economic Development (CAPRED), the new Infrastructure Bond Prakas provides a clear framework for issuing bonds to finance essential infrastructure projects, including roads, bridges, and utilities.

H.E. Sou Socheat, the Delegate of the Royal Government and Director General of the SERC, emphasized that the infrastructure sector is crucial for all socioeconomic activities, acting as a catalyst for growth and strengthening economic resilience. “This initiative aligns seamlessly with our nation’s economic development priorities,” he stated.

Socheat also noted, “This milestone reflects our commitment to diversifying financial products beyond conventional offerings while promoting sustainable financing options.” He added that it broadens access to various financing mechanisms, thereby allowing companies to raise capital more effectively. Consequently, this initiative is expected to significantly contribute to national development, particularly in priority sectors and environmentally sustainable projects.

According to Cambodia’s National Infrastructure Master Plan (2023-2033), there is an estimated financing need of around US$36 billion. The launch of the Prakas opens the door for investors to fund this ambition through Cambodia’s securities market. With this regulation in place, Cambodia joins regional counterparts like Vietnam and Indonesia in utilizing infrastructure bonds to mobilize billions in long-term financing. The Prakas establishes similar financing mechanisms, enhancing investor confidence and supporting sustainable, long-term development.

The Prakas consists of seven chapters and 25 articles, clearly outlining the eligibility criteria, issuance procedures, and ongoing obligations for bond issuers. A separate guideline further defines eligible infrastructure sectors and financing models.

Since the issuance of Cambodia’s first government bond in 2022, the local capital market has raised over USD 417.46 million through corporate bonds, indicating a growing investor interest. The Infrastructure Bond Prakas builds on this momentum by creating investment channels that directly align with Cambodia’s development priorities.

• Road and Infrastructure