Logo of Phnom Penh Post newspaper Phnom Penh Post - Info on first sovereign bond’s issuances now available at CSX

Info on first sovereign bond’s issuances now available at CSX

Content image - Phnom Penh Post
Information on upcoming issuances of the Kingdom’s first sovereign bond’s additional tranches is now publicly available at the Cambodia Securities Exchange (CSX). Hong Menea

Info on first sovereign bond’s issuances now available at CSX

Investors can now find up-to-date information on the issuance of subsequent tranches of the Kingdom’s inaugural sovereign bond on Cambodia Securities Exchange (CSX) sources.

The CSX revealed in an announcement that the sovereign bond, worth 1.2195 trillion riel (about $300 million), was “profile-listed” on the exchange on September 21.

This means that all pertinent information concerning upcoming tranches will be publicly available, although the general public will not be able to trade in the government debt security until it is “full-listed”, its CEO Hong Sok Hour explained to The Post the following day.

When asked for a more concrete date for the full-listing, he said: “We need a little more time to prepare and operate effectively before we can have sovereign bond trading start, in our state securities market.”

For reference, the “primary market” is the part of capital market where companies directly issue securities to investors. The “secondary market” is the segment where investors trade the securities bought on the primary market with each other, rather than with the issuing entity.

However, sovereign bonds are not provided through the normal market mechanisms, rather they are issued through the National Bank of Cambodia (NBC), which serves as an agent, Securities and Exchange Regulator of Cambodia (SERC) director-general Sou Socheat explained to The Post on September 22.

He noted that there is a policy document requiring relevant information to be compiled at the CSX for the sovereign bond to be profile-listed, adding that the bourse has all the information collected from the issuance of the first tranche, wherein buyers had to “register and store information”. Socheat said this would be the norm for the upcoming tranches.

On September 7, the sovereign bond’s 100 billion riel maiden tranche was issued by the government in single-price auction format, with the NBC as an agent.

The tranche was issued at par value of one million riel, carrying a fixed per-annum coupon rate of two per cent paid semi-annually and a tenor of one year.

An announcement of the results of the first auction revealed that eight institutions took part, and that the total bidding volume was 41,800 units and winning bid rate 2.2 per cent.

On September 19, The NBC said the second tranche, of 200 billion riel, was to be issued on September 21 at par value of one million riel, carrying a fixed per-annum coupon rate of 2.44 per cent paid semi-annually and a tenor of three years. The results of this issuance have not been made public as of press time.

Sok Hour previously explained that the approximately $300 million to be received from the bond is the maximum amount that the National Assembly has authorised for the government to raise on the securities market.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • 11th Chaktomuk Short Film Festival draws to close

    Cambodia's 11th Chaktomuk Short Film Festival wrapped up successfully on November 28 after a four-day run, with the film “Voice of the Night” awarded top prize for 2022. Sum Sithen, the organiser of the short film festival, told The Post that the number of attendees to the