The Ministry of Economy and Finance has officially announced its plan to issue state securities, commonly referred to as government bonds, amounting to 2,114 billion Riels (approximately US$500 million) for the year 2026. This move aims to mobilize financial resources from local investors and support the national economy.
According to a press release issued by the Ministry of Economy on January 9, the issuance of these securities will be conducted through an auction process. This auction will be facilitated via the National Bank of Cambodia Platform (NBCP), ensuring a structured and transparent bidding environment for interested investors.
Prospective investors will find that the offerings are available across a range of maturities, catering to different investment horizons. These include 1-year, 2-year, 3-year, 5-year, 10-year, and 15-year terms. The securities will be denominated in both the Cambodian Riel and the US Dollar, providing flexibility for a diverse investor base.
The minimum subscription price for these state securities has been set at 1,000,000 Riels or US$1,000 per unit. A key feature of these bonds is a fixed coupon rate, with interest payments scheduled to be made every six months from their issuance date, as confirmed by the Ministry of Economy.
Delving deeper into the specifics, the Ministry of Economy detailed the target issuance amounts for various maturities. For the 1-year securities, the government plans to issue between 210 billion and 300 billion Riels. The 2-year securities are projected to be issued in the amount of 420 billion to 600 billion Riels.
For the 3-year term loans, the state aims to issue between 850 billion and 1 trillion Riels. Similarly, for the longer-term loans, encompassing 5-year, 10-year, and 15-year maturities, the combined issuance is planned to range between 850 billion and 1 trillion Riels.
The 2026 issuance marks a significant milestone, as it represents the fifth consecutive year that the Cambodian government has opted to mobilize financial resources from local investors through the direct sale of state securities.
To enhance investor appeal and encourage participation, the government has announced a suite of attractive incentives. These include a complete exemption from income tax for investments made in all types of securities issued in 2026. Furthermore, a substantial 50 percent reduction in withholding tax on interest earned from holding or trading these securities will be implemented. Additionally, investors will benefit from a full tax exemption on capital gains derived from the purchase and subsequent trading of these state securities.
The Ministry of Economy also provided a historical overview of previous state securities issuances. This included US$300 million in 2022, US$200 million in 2023, US$100 million in 2024, and a projected US$120 million for 2025, demonstrating a consistent strategy to engage local financial markets.
