Gov’t bonds on hold till further notice: official
Gov’t bonds on hold till further notice: official
Plans for Cambodia’s inaugural issuance of sovereign bonds worth $300 million have been postponed until further notice from their original end-June date due to technical issues, according to a finance ministry spokesman.
Government securities, including bonds, are a vital financial tool for governments to raise financing from the domestic private sector and from abroad for socio-economic development, according to a press release on the Senate session that approved the Draft Law on Government Securities.
Without providing an estimated timeframe for completion, Ministry of Economy and Finance spokesman Meas Soksensan told The Post that a technical team under the ministry is currently working on a number of remaining issues before the bond issuance can move ahead.
Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat told The Post on June 29 that other countries are diversifying their debt financing sources and issuing government bonds to sell to domestic and foreign investors for economic development.
He said government bonds provide a benchmark to corporate debt, especially for pricing decisions, and a host of other advantages that can support the securities market.
Speaking at a forum in mid-May, Minister of Economy and Finance Aun Pornmoniroth said: “Government bonds are expected to be popular on Cambodia Securities Exchange [CSX] and provide benchmark data for corporate securities trading and financial analysis as implemented in countries with a growing securities sector.”
At present, a total of 16 companies feature on Cambodia Securities Exchange (CSX) – nine companies have issued shares on the Main Board and Growth Board – and seven corporations have listed their bonds. As of February 9, the companies have raised a total of $281 million.
