SERC drafts infrastructure debt securities for market

SERC drafts infrastructure debt securities for market

The Securities and Exchange Regulator of Cambodia (SERC) has drafted a new product called Infrastructure Debt Securities, diversifying the financial instruments available in the securities market to meet the needs of investors.

SERC with technical assistance from the Cambodia-Australia Partnership for Resilient Economic Development (CAPRED) is drafting requirements, procedures and obligations for infrastructure debt securities offerings.

It has also drafted guidelines on eligible assets used for the offering of infrastructure debt securities, which were designed to complement the Prakas by detailing the types of eligible assets.

Director General of the SERC Sou Socheat said the SERC has a sufficient, robust, and well-established securities market infrastructure, comparable to other markets in the region. This allows investors to invest capital at any time and enables companies to use existing financial instruments to seek financing from the securities market.

“The SERC has continuously diversified the financial instruments available in the securities market to meet the needs of investors. As a testament to this, the SERC has drafted a new product called Infrastructure Debt Securities, which I believe is essential for both investors and companies in the infrastructure sector,” he said in a public consultation meeting held last week.

“Investors can use it to diversify their investment portfolios, while companies can raise capital through debt securities offerings,” he added.

The SERC has prepared a draft Prakas to supplement the existing Prakas on debt securities offering, along with a draft Guideline on the types of structures allowed under this mechanism, he said.

A public consultation meeting on the drafting Prakas on “Offering of Infrastructure Debt Securities” was attended by senior management and officials from all relevant departments of the SERC, relevant ministries and institutions, and authorities, as well as representatives from the Cambodia Securities Exchange, CAPRED, securities firms, audit firms, law firms, and credit rating agencies in the securities sector and listed entities aimed to provide valuable input, to raise questions, and to offer constructive comments.

Launched in 2012, the Cambodia Securities Exchanges (CSX) is a joint venture between the Cambodian government holding 55 percent of the stakes and the Korean Exchange owning the remaining 45 percent.

With more and more companies preparing for initial public offerings (IPOs) and expanding their investment portfolios to invest in the country’s securities market, the market is offering interesting investment options.

Investors can invest in the securities market with financial instruments such as equity securities or stocks, debt securities or bonds, and derivatives.

As of February, this year, CSX has 24 listed companies, including 11 companies listed as equity securities and 13 other companies listed as debt securities. The listed companies raised a combined $475 million from the securities market.

khmertimeskh