PHNOM PENH: The Royal Government of Cambodia has issued government securities in the total amount of KHR 295.30 billion (approximately US$70 million) from local investors in the first three-quarter period of 2024, according to a report from the Ministry of Economy and Finance.
The funds mobilized from issuing government securities accounted for 65 percent of the ceiling permitted by the law (KHR 440 billion), read the report, issued on Dec. 10.
The funds raised from the bond sales are allocated to crucial public investment projects aimed at bolstering infrastructure and other essential sectors and promoting economic growth and productivity.
Issued initiatively in 2022, the government bond is a new financial instrument, enabling the Royal Government of Cambodia to augment domestic revenue, thereby reducing the need to borrow from foreign sources for infrastructure development.
The issuance of government bonds is also to finance projects that can provide direct revenue to the government and ensure investment efficiency and sustainability of public debt management.
Government bonds are currently auctioned through the National Bank of Cambodia Auction Platform (NBCP) with investors from institutional investors such as banks and insurance companies.
Investors in government bonds 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, according to the Ministry of Economy and Finance. AKP