The government will issue its bonds in the primary market in the second quarter of this year through a second platform called the Government Securities Auction Platform (GSAP), in addition to the National Bank of Cambodia Auction Platform (NBCP).
Institutional investors will be able to enter the auctions of the government bonds through the new platform developed by the Cambodia Securities Exchange (CSX), said its CEO Hong Sok Hour.
The first auction of the government bonds through the GSAP is expected in the second quarter this year,” Sok Hour told Khmer Times yesterday.
Currently, government bonds are issued only through NBCP.
GSAP is a soon-to-be-launched platform developed by the Cambodia Securities Exchange (CSX) in addition to the NBCP, with both auction platforms putting emphasis on different maturity periods.
The two auction platforms will allow institutional investors including commercial banks, microfinance institutions, securities firms, insurance companies, the National Social Security Fund, other fund managers and custodians to enter the market directly in accordance with the government’s issuance plan.
Government bonds are known to have the lowest risk – almost zero, because they are backed by a country’s government with high liquidity, Sok Hour said.
In 2023, the government plans to raise $200 million from bonds, which can bring it direct revenues, and ensure investment efficiency and sustainability of debt management and the national budget, according to the Ministry of Economy and Finance.
Source: Khmer Times
