Govt finalizing legislation for bond market

The government is finalizing legislation that would regulate the establishment of a bond market, officials said during a public consultation on a prakas (regulation) on public offering of debt securities. The draft prakas contains 10 chapters and 51 articles, and includes proposed fees for bond issuance. Sou Socheat, director general of the Securities and Exchange Commission of Cambodia (SECC), said corporate bonds would provide a new avenue for companies to raise funds for capital improvements, expansions, debt refinancing, or acquisitions. While Socheat could not give a timeline for the legislation’s passage, he said the SECC hoped it would come into effect later this year. Han Kyung Tae, managing director of Yuanta Securities (Cambodia), said the introduction of debt securities would be a positive step in the development of Cambodia’s capital market, and would provide a good source of capital for local businesses, but that it may still be too early for corporate bonds, as they more logically follow the introduction of government bonds and established bond credit ratings. (Source: Phnom Penh Post)