Logo of Phnom Penh Post newspaper Phnom Penh Post - Eight institutions take part in Cambodia’s first sovereign-bond auction

Eight institutions take part in Cambodia’s first sovereign-bond auction

Content image - Phnom Penh Post
The National Bank of Cambodia (NBC). POST STAFF

Eight institutions take part in Cambodia’s first sovereign-bond auction

At least eight institutions took part in an auction for the 100 billion riel ($25 million) first tranche of the Kingdom’s inaugural sovereign bond worth 1.2195 trillion riel, issued by the government—not by NBC.

An announcement of the results of the first auction, held on September 7, revealed that the total bidding volume was 41,800 units and winning bid rate 2.2 per cent.

The NBC had said in a September 5 statement that the maiden issuance – carried out in single-price auction format – would go live on September 7 from 8am to 2pm, and that the tranche would be issued at par value of one million riel, carrying a fixed per-annum coupon rate of two per cent paid semiannually and a tenor of one year.

Cambodia Securities Exchange (CSX) CEO Hong Sok Hour told The Post on September 8 that the government sees the inaugural sovereign bond offering as a “market test” to gain insight into demand as well as the expectations for state securities, which he noted would provide new options for investors to diversify portfolios and the state to raise funds.

Although the auction’s results may appear lacklustre, Sok Hour argued that “this does not mean that there is no demand”, reasoning that the one-year term and two per cent coupon rate may have put off some investors.

He believes the issuance targets development of the securities market, and is hence welcome, “no matter the size”, and commented that the government “can have other sources of capital available at low interest rates”.

Besides, the approximately $300 million to be received from the bond is the maximum amount that the National Assembly has authorised for the government to raise on the securities market, Sok Hour explained.

Meanwhile, speaking at a May 16 national conference on the CSX, Minister of Economy and Finance Aun Pornmoniroth commented that sovereign securities would enable the state to raise funds for economic development.

“Government bonds are expected to be popular on the Cambodia Securities Exchange, and provide benchmark data for corporate securities trading and financial analysis, as is the case in countries with a growing securities sector,” he said.


  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.