PHNOM PENH: The Royal Government of Cambodia successfully raised over $60 million through the issuance of public securities in the first half of 2024, according to the National Bank of Cambodia (NBC). The funds will be channeled into public investment projects to drive economic growth and productivity.

Through six auctions held in the first six months, the government garnered approximately $63 million or 255.3 billion riels. Investors snapped up one-year, two-year, and three-year securities with varying interest rates.

One-year securities totaled 32 billion riels with a 3.50% coupon rate and 3.75-3.95% yield, two-year securities reached 40 billion riels with a 4.00% coupon rate and 4.70-4.75% yield, while three-year securities amounted to 183.3 billion riels with a 4.50% coupon rate and 4.00-5.25% yield.

The government has set an ambitious target of issuing 440 billion riels worth of securities throughout 2024. To broaden investor participation, the NBC is facilitating entry for non-bank financial institutions into both the primary and secondary securities markets.

The Ministry of Economy and Finance emphasized the crucial role of government securities in financing public expenditure. Beyond raising capital, these instruments contribute to strengthening the government’s financial position, establishing a sustainable financial framework, and deepening the domestic financial market.

As of June 2024, approximately $115 million (457.3 billion riels) worth of securities remained outstanding. Coupon payments totaled $1.15 million (4.6 billion riels) and principal repayments reached $6.98 million (28 billion riels) during the first half of the year.

The successful securities issuance reflects the growing confidence in Cambodia’s economy and its commitment to sustainable development.