Bonds

Government Gears up to Issue $300m Bonds

The Ministry of Economy and Finance will issue inaugural government bonds of $300 million in September, and investors are being encouraged to cash in to enjoy a string of tax-saving benefits
A person walks near the Ministry of Economy and Finance. Kiripost/Siv Channa
A person walks near the Ministry of Economy and Finance. Kiripost/Siv Channa

The Ministry of Economy and Finance announced on Thursday it will issue the first government bonds of $300 million in September, urging investors to purchase to enjoy a raft of benefits that include tax incentives.

In a news release, the ministry said investors will receive tax incentives, a 50 percent deduction on withholding tax, trading of state securities, and exemption from capital gains tax on purchases for a period of three years.

Hong Sok Hour, Chief Executive Officer of Cambodia Securities Exchange, said the bond forms part of a government initiative to create a new funding source to develop the country without having to rely on loans from other countries that come with interest.

“If we become a developed country, other countries will not allow us to keep borrowing,” Sok Hour told Kiripost. “This is the right time that the government starts having mechanisms of marketing to borrow from its own people by beginning to publish bonds.”

He added that a few years ago, the securities exchange sector was beginning to grow. Now, it is time to create a new source of funding to apply expenditure in the future.

“The issuance of the government bond is trying to create funding and create awareness, and for investors to study and learn about it,” he said.