Phnom Penh: According to a report from the Ministry of Economy and Finance, the Royal Government of Cambodia successfully issued government securities totaling KHR 295.30 billion (approximately $70 million) to local investors during the first three quarters of 2024.

The report, released on December 10, indicated that the funds mobilized from the issuance of government securities accounted for 65 percent of the legally permitted ceiling of KHR 440 billion.

The capital raised from these bond sales is earmarked for critical public investment projects aimed at enhancing infrastructure and other essential sectors, thereby promoting economic growth and productivity.

First introduced in 2022, government bonds represent a new financial instrument designed to help the Royal Government of Cambodia enhance domestic revenue and minimize reliance on foreign borrowing for infrastructure development.

Moreover, the issuance of government bonds finances projects expected to yield direct revenue for the government while ensuring efficient and sustainable public debt management.

Government bonds are currently auctioned via the National Bank of Cambodia Auction Platform (NBCP), attracting institutional investors, including banks and insurance companies.

Investors in government bonds benefit from a 50-percent deduction of withholding tax on interest earned from holding and trading the bonds, and they receive a tax exemption on capital gains from the purchase and trading of the bonds for three years, as outlined by the Ministry of Economy and Finance. AKP