Cambodia Achieves Successful Bond Issuance of US$27 Million in H1-2023, Equal to 13.5% of Plan

• 3 August 2023
• Local News
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The Cambodian government has successfully issued bonds worth a total of US$27 million in the first half of 2023. This remarkable achievement signifies a substantial step towards the realisation of the planned US$200 million issuance, according to the release of the Ministry of Information on 31 July 2023.

The Ministry of Information’s release on 31 July 2023 underscored the significance of this accomplishment, achieved through the meticulously executed auction platform of the National Bank of Cambodia.

Amidst a backdrop of a dynamic economic landscape, the National Bank of Cambodia has overseen six meticulously orchestrated auctions of state bonds throughout the first half of 2023, cumulatively amounting to approximately 112 billion riels, equivalent to an impressive US$27 million. This tangible progress accentuates Cambodia’s proactive approach to fortifying its financial infrastructure.

Beyond serving as a vital means to meet annual expenses, these state bonds also play a pivotal role in catalysing the growth of Cambodia’s burgeoning securities sector. This marks the second consecutive year in which the government has embarked on such successful bond issuances, attesting to the sustained momentum of Cambodia’s financial market.

Investors within the state bond sector can anticipate multiple benefits, including a noteworthy 50% reduction in withholding tax for both bond holdings and sales. Furthermore, a significant incentive takes shape through the exemption of capital tax for the purchase and trading of long-term bonds spanning over three years.

• Economy and Finance
• Investment and Funding