NBC supports govt bond market with 410B riel and $70M

NBC supports govt bond market with 410B riel and $70M

The bond issuances are accompanied by 40 coupon payments and six principal repayments during the year, reflecting sustained activity in Cambodia’s domestic bond market, says the NBC’s Annual Report 2025.

The National Bank of Cambodia (NBC) played a key role in supporting the development of the country’s government securities market in 2025 by facilitating the issuance of 11 government bonds for the Ministry of Economy and Finance (MEF), with a combined value of 410.3 billion riel and $70 million.

According to the NBC’s Annual Report 2025, released recently, the bond issuances were accompanied by 40 coupon payments and six principal repayments during the year, reflecting sustained activity in Cambodia’s domestic bond market.

The report stated that 1-year government bonds recorded an average coupon rate of 2.75 percent, with an average winning bid yield of 3.15 percent. The 2-year bonds carried an average coupon rate of 3.20 percent.

Meanwhile, the 3-year government bonds offered an average coupon rate of 3.48 percent and an average winning bid yield of 3.99 percent. The 5-year bonds posted an average coupon rate of 4.21 percent, with an average winning bid yield of 4.5 percent, while the 10-year bonds recorded an average coupon rate of 4.60 percent.

In addition to bond issuance activities, the NBC facilitated the admission of one non-bank financial institution, Royal Group Securities Co., Ltd., as a government securities intermediary and a member of the National Bank of Cambodia Platform (NBCP). The institution successfully participated in the government securities auction held on October 22, 2025, marking the 39th government securities issuance.

The report further noted that the State Securities Working Group of the National Bank of Cambodia held discussions with a government securities intermediary and worked closely with the Ministry of Economy and Finance on two government securities sales promotion programmes targeting potential investors. These efforts aimed to encourage broader investor participation and further strengthen the development of Cambodia’s government securities market.

Darin Duch, economist, told Khmer Times that such bond issuances could help channel funds towards priority infrastructure and human capital projects, boosting the productivity of the private sector.

“Cambodia’s public debt remains sustainable and well below international risk limits,” he said. “Much of the borrowing is concessional, at low interest rates and with long maturities. These funds are best directed towards long-term growth initiatives.”

The economist emphasised that effective investment spending, combined with improved revenue collection and prudent expenditure management, will allow Cambodia to maintain strong fiscal discipline while continuing to drive economic growth.

It is worth noting that MEF has announced plans to issue government securities worth 2,140,000 million riels in 2026, equivalent to over $500 million, through a bidding process on NBCP, according to an MEF statement released recently.

The issuance forms part of the government’s ongoing efforts to mobilise domestic financing, deepen the local capital market, and strengthen public financial management.

The securities will be offered via the NBCP, the centralised electronic platform operated by the National Bank of Cambodia, which facilitates transparent, market-based auctions of government debt instruments. The move is expected to provide domestic financial institutions with additional investment options while supporting the government’s budgetary and development priorities.

Deputy Prime Minister and Minister of Economy and Finance, Aun Pornmoniroth, outlined the government’s fiscal strategy in November 2025, highlighting both domestic and international borrowing plans aimed at sustaining Cambodia’s economic momentum amid a shifting global environment.

“The government intends to borrow domestically by issuing government bonds totalling 2.1 trillion riel, equivalent to around $524 million, to finance investment expenditure and maintain the national budget balance.”

Pornmoniroth added that Cambodia’s current and medium-term public debt remains “sustainable” and “low risk,” with the government committed to preserving fiscal stability.

khmertimeskh