Phnom penh: The Securities and Exchange Regulator of Cambodia (SERC), in collaboration with Australia, organized a workshop on 'Public Awareness on the Implementation of the Prakas on the Offering of Infrastructure Debt Securities and the Guideline on the Eligible Assets Used for the Offering of Infrastructure Debt Securities'. H.E. Sou Socheat, Delegate of the Royal Government in charge as Director General of the SERC, and H.E. Derek Yip, Australian Ambassador to Cambodia, co-chaired the workshop held at the Hyatt Regency Phnom Penh on July 22.
According to Agence Kampuchea Presse, the workshop marked the official launch of a new regulation enabling public and private companies to raise long-term capital for infrastructure through bond issuance. This development is an important step toward a more resilient, market-driven economy. Supported by Australia through the Cambodia Australia Partnership for Resilient Economic Development (CAPRED), the new Infrastructure Bond Prakas provides a clear framework for issuing bonds to finance roads, bridges, utilities, and other essential infrastructure.
Ambassador Yip stated, 'Australia is helping Cambodia to further develop its capital market. This Prakas is a critical step in expanding financing channels to fund the infrastructure Cambodia needs to drive inclusive growth, improve livelihoods, and strengthen economic resilience. It is another way we are contributing to sustainable development in Cambodia, in line with the priorities outlined in the Australia-Cambodia Development Partnership Plan 2025-2029.'
Cambodia's National Infrastructure Master Plan (2023-2033) identifies a financing need of approximately US$36 billion. The launch of the Prakas opens the door for investors to finance this ambition through Cambodia's securities market. H.E. Sou Socheat emphasized the importance of the infrastructure sector as the backbone of socio-economic activities and a critical catalyst for growth and economic resilience. The adoption of this Prakas aligns with Cambodia's economic development priorities, reflecting a commitment to diversifying financial products and emphasizing sustainable financing options.
With this regulation, Cambodia joins regional peers such as Vietnam and Indonesia in leveraging infrastructure bonds to mobilize long-term financing. The Prakas enables similar financing mechanisms, boosting investor confidence and supporting sustainable, long-term development. Comprising seven chapters and 25 articles, the Prakas clearly outlines the eligibility criteria, issuance procedures, and ongoing obligations for bond issuers. A separate guideline defines eligible infrastructure sectors and financing models.
Since the issuance of Cambodia's first government bond in 2022, the local capital market has raised over US$417.46 million through corporate bonds, demonstrating growing investor interest. The Infrastructure Bond Prakas builds on this momentum by creating investment channels directly aligned with Cambodia's development priorities.