NBC Auctions Government Bond Today

The National Bank of Cambodia (NBC) on Wednesday auctioned the first government bond of 100 billion Riel (approximately US$24.2 million) to raise funds from investment for national economic development.

The government bond was auctioned through the National Bank of Cambodia Platform (NBCP), the NBC said, stressing that the face value per unit is worth 1 million Riel (about US$242).

Investors who buy the government bond will receive a fixed interest rate of 2 percent per annum, which will be paid every six months.

The bond to be issued is the Royal Government’s first step in implementing the historic plan to issue 1,219 billion Riel (approximately US$295.4 million).

The government bond issuance is aimed at strengthening the management of the government’s needs, especially in response to the need for financing for economic and social development, as well as supporting the government’s priority and necessary projects.

The successful issuance of the securities will help the government to fund large infrastructure projects, such as roads, railways, and airports, said H.E. Hong Sok Hour, Chief Executive Officer of the Cambodia Securities Exchange (CSX).

“The Cambodian government now has access to funds from overseas partners. If the foreign sources of capital dwindle as Cambodia develops, we need to have our own sources of capital. Therefore, the issuance of government securities is a step to secure the future,” he underlined.

Source: Agence Kampuchea Presse