PHNOM PENH: The government has raised funds through government bond issuance with a total of US$27 million in the first six months of this year, accounting for 13.5 percent of the $200 million target.

The government issues its bonds in the first primary market through the National Bank of Cambodia Auction Platform (NBCP).

“In the first semester of 2023, the bidding for government bonds on the NBCP was made six times with a total capital of 112 billion Riel (approximately $27 million),” the central bank report showed.

In 2023, the government plans to raise $200 million from bonds, which can bring it direct revenues, and ensure investment efficiency and sustainability of debt management and the national budget, according to the Ministry of Economy and Finance.

The government bond is not only to complete the annual expenditure but also to contribute to promoting the securities sector in the country. This is the second year of government securities issuance.

Investors in government bonds will enjoy a 50 percent deduction of withholding tax on the interest earned from holding and trading the bonds, and tax exemption on capital gains from purchasing and trading the bonds for three years.