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Gov't bond to enter the local exchange

January 16, 2020  |  Source: Khmer Times

Senior Officials at Cambodia Securities Exchange (CSX) said government bonds are expected to enter the local bourse within possibly the next two or three years.

CSX CEO Hong Sok Hour, told Khmer Times yesterday much work needs to be done to bring it into reality because the government bond issuance involves many parties such as the Ministry of Economic and Finance, the National Bank of Cambodia and the Cambodia Securities Exchange.

"As to when the government will list bonds on the bourse – it would probably be available for investors in the next two to three years, he said.

Mr Hour noted once the bond gets officially listed, it will definitely bring a huge positive impact to the Kingdom’s securities industry a whole.

He added that government bonds are considered to be the most stable security and will attract big companies to invest such as insurance, banking and state-owned institutions including the National Social Security Fund.

The government corporate bond is expected to provide a new avenue for companies to raise funds for capital improvements, expansions, debt refinancing or acquisitions.

Chou Vannak, deputy director general of the General Department of Financial Industry at the Finance Ministry, previously said government securities will serve to support economic growth, reduce reliance on foreign currencies and risks associated with currency exchange rates and will allow the central bank to take control of the country’s monetary policy. "The bonds will play a crucial role… when Cambodia becomes a wealthier… nation."