According to a report from the National Bank of Cambodia, in the first half of this year, the Cambodian government raised approximately $62 million from domestic investors through the issuance of government bonds to support public investment projects. This data highlights the increasing confidence of domestic investors in Cambodia's economic prospects and government financial management.

Cambodia raises $62 million through government bonds

The report states that government bonds have been auctioned six times in the first six months of this year, with a total amount of 255.3 billion riels (approximately 62 million US dollars), accounting for over 50% of the government's 2024 fundraising target of 108 million US dollars.

It is understood that the funds raised by the government through the issuance of government bonds will be allocated to important public investment projects aimed at strengthening infrastructure and other important areas, promoting economic growth and productivity. The issuance of sovereign bonds is also aimed at funding projects that can provide direct revenue to the government and ensure investment efficiency and sustainability of public debt management.

Government bonds are currently auctioned through the National Bank of Cambodia Auction Platform (NBCP) to investors from institutions such as banks and insurance companies. The National Bank of Cambodia has stated that it is currently improving legal procedures and facilitating measures to allow non bank companies to trade government bonds on the National Bank of Cambodia Auction Platform (NBCP) in both primary and secondary markets.

The government bonds are also planned to be issued through a second platform under the Cambodia Stock Exchange (CSX), known as the Government Securities Auction Platform. The Cambodian Ministry of Finance and Economics stated that sovereign bond investors will enjoy a 50% commission tax reduction on the interest earned from holding and trading bonds, and capital gains from purchasing and trading bonds will be exempt from taxes for three years.

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