PHNOM PENH – Cambodia will issue the first-ever sovereign bond worth US$300 million (RM1.35 billion) in September, according to a news release from the Economy and Finance Ministry today.
Par value of a bond is 1 million riels (RM1,098.58), the news release said, adding that bond maturities are one year, three years and five years.
Investors will enjoy a 50% withholding tax deduction on the interest earned from possessing and trading sovereign bonds, and tax exemption on capital gains from purchasing and trading the sovereign bonds for three years, it said.
Deputy Prime Minister and Economy and Finance Minister Aun Pornmoniroth said sovereign bonds will allow the government to raise funds for socioeconomic development projects.
He said the bonds will serve as a new financial instrument for institutional investors such as banks, insurance companies, the National Social Security Fund and pension fund, among others.
“The government bonds are expected to be popularly traded on the Cambodia Securities Exchange (CSX) and will provide benchmark data for corporate securities trading and financial analysis as implemented in countries with an advanced securities sector,” he said.
Launched in 2012, the CSX is a joint venture between the Cambodian government, who holds 55% of the stakes, and the Korean Exchange, who owns the remaining 45%. – Bernama, August 25, 2022
