PHNOM PENH: Cambodia has taken a monumental step towards funding its ambitious infrastructure goals, officially launching a new regulation on July 22 that will enable public and private companies to raise long-term capital for crucial development projects through bond issuance. This pivotal move is set to unlock an estimated US$36 billion in financing identified in the nation’s National Infrastructure Master Plan (2023-2033).
The launch was marked by a workshop titled ‘Public Awareness on the Implementation of the Prakas on the Offering of Infrastructure Debt Securities and the Guideline on the Eligible Assets Used for the Offering of Infrastructure Debt Securities.’ Held at the Hyatt Regency Phnom Penh, the event was co-chaired by H.E. Sou Socheat, Director General of the Securities and Exchange Regulator of Cambodia (SERC), and H.E. Derek Yip, Australian Ambassador to Cambodia, highlighting the collaborative effort between the SERC and Australia.
Developed by the SERC with crucial support from Australia through the Cambodia Australia Partnership for Resilient Economic Development (CAPRED), the new Infrastructure Bond Prakas establishes a clear and comprehensive framework for issuing bonds. This framework is specifically designed to finance essential infrastructure, including roads, bridges, and utilities.
Ambassador Yip emphasized Australia’s commitment to bolstering Cambodia’s capital market. “This Prakas is a critical step in expanding financing channels to fund the infrastructure Cambodia needs to drive inclusive growth, improve livelihoods, and strengthen economic resilience,” he stated. He further noted that this initiative aligns directly with the priorities outlined in the Australia–Cambodia Development Partnership Plan 2025-2029, reinforcing Australia’s contribution to sustainable development in Cambodia.
H.E. Sou Socheat underscored the fundamental importance of the infrastructure sector, describing it as “the backbone and lifeblood of all socio-economic activities.” He affirmed that the adoption of this Prakas seamlessly integrates with Cambodia’s national economic development priorities.
“This milestone not only reflects our commitment to diversifying financial products beyond conventional offerings but also emphasizes sustainable financing options,” he added. The Prakas will broaden companies’ access to diverse financing mechanisms, enabling them to raise capital more effectively and significantly contribute to national development, particularly in priority sectors and environmentally sustainable projects.
With this new regulation in place, Cambodia joins regional peers like Vietnam and Indonesia in leveraging infrastructure bonds to mobilize substantial long-term financing. The Prakas is designed to facilitate similar financing mechanisms, fostering greater investor confidence and supporting sustainable, long-term development.
The Prakas itself is a robust document, comprising seven chapters and 25 articles, which meticulously outline the eligibility criteria, issuance procedures, and ongoing obligations for bond issuers. A separate guideline further defines eligible infrastructure sectors and financing models.
Cambodia’s local capital market has already demonstrated growing investor interest, having raised over US$417.46 million through corporate bonds since the issuance of the country’s first government bond in 2022. The Infrastructure Bond Prakas builds on this positive momentum by creating direct investment channels specifically aligned with Cambodia’s pressing development priorities, paving the way for the nation to realize its ambitious infrastructure vision.
