Cambodia Securities and Exchange Commission (SECC) signed an agreement with the Australian government to enable Cambodia to diversify financing for infrastructure.
The agreement is titled: “Domestic Capital Mobilisation for Infrastructure Investment through the Security market Project”.
It will be funded through Australia’s AU$50 million ($36 million) “Technical Assistance Project on Domestic Capital Mobilisation through Securities Market for Infrastructure Investment with Investing in Infrastructure”, called “3i Cambodia”.
3i is an organisation investing in infrastructure and comprised of engineers and financial experts managed by the Palladium Group on behalf of the Australian Department of Foreign Affairs and Trade.
Australia Ambassador to Cambodia Pablo Kang and 3i management met on Wednesday with SECC director-general Sou Socheat.
“This signing ceremony was organized to have a clear cooperation-mechanism between 3i and SECC in terms of advising on policies, regulations and other mechanisms necessary for the development of the bond market.
“Advice in the form of market consultations and fruitful input was also provided to contribute to the improvement of capital mobilisation from the private sector through the launch of new products for infrastructure investment in Cambodia,” according to a SECC press lease.
The Australian Embassy wrote in its release that an effective domestic capital market will enable Cambodia to diversify financing for infrastructure, providing more flexibility to respond to Covid-19 economic recovery efforts.
“We will work closely with the SECC to facilitate the creation of conditions for a vibrant long-term capital market that supports Cambodia’s infrastructure development,” Kang said in the release.
This includes providing technical assistance to develop a regulatory framework for long-term debt and building the capacity of market participants to give the private sector in Cambodia more tools to invest in infrastructure. The technical assistance will also identify one infrastructure project to pilot, according to the release.
“Australia is committed to assisting Cambodia to diversify its sources of infrastructure investment, as we believe this is critical for inclusive and resilient economic growth.