Logo of Phnom Penh Post newspaper Phnom Penh Post - $13m bond issue

$13m bond issue

$13m bond issue

The Ministry of Economy and Finance issued more than $13 million worth of bonds

April 1 to satisfy the capital requirements of Cambodia's two state-owned insurance

companies. The bonds, which are valued at more than $2,500 each, will mature in three

years.

Mey Vann, director of the department of industrial finance at the ministry, told

the Post the bonds could not be sold because Cambodia lacked the necessary laws to

regulate financial markets.

"We borrowed the money from the National Bank [of Cambodia] in order to fulfill

the capital requirement," said Vann. "We printed the bonds and then signed

a contract with the state enterprise."

Caminco and Kampuchea Re, the two state-owned insurance companies, will pay 3 percent

interest on the bonds.

Under a sub-decree passed last October, all insurance companies are required to have

a capital investment of at least $7 million, with 10 percent lodged at the national

treasury and 50 percent pledged as an insolvency deposit.

At the time the sub-decree was issued private insurance companies criticized the

capital requirement, arguing it was excessive given the country's small insurance

market.

MOST VIEWED

  • Cambodia-Thailand rail reconnected after 45 years

    A railway reconnecting Cambodia and Thailand was officially inaugurated on Monday following a 45-year hiatus, with the two kingdoms’ prime ministers in attendance at the ceremony. On the occasion, Cambodian Prime Minister Hun Sen and Thai Prime Minister Prayut Chan-o-cha travelled together from Thailand’s

  • Thousands attend CNRP-organised pro-democracy vigil in South Korea

    Thousands of supporters of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP) on Saturday gathered in the South Korean city of Gwangju to hold a candlelight demonstration calling for the “liberation” of democracy in Cambodia. Yim Sinorn, a CNRP member in South Korea, said on

  • US Embassy: Chinese trade does not help like the West’s

    The US Embassy in Phnom Penh on Friday said relations between China and Cambodia did not create jobs or help industry when compared to the trade between the Kingdom and the US. “About 87 per cent of trade [with China] are Chinese imports, which do not

  • New airport study set for 2019

    A feasibility study on the construction of a new airport in the Kingdom will be launched later this year, according to a Ministry of Tourism spokesman on Monday. The plan was approved last week in a meeting held by the Ministry of Economy and Finance