Prime Minister Hun Sen on Thursday encouraged private banks and micro financial institutions to invest on the guaranteed bonds issued by the Cambodia Airport Investment Co Ltd (CAIC) which is raising funds for developing the new, under-construction airport in Kandal province.
This is part of the programme of raising investment funds from domestic sources, he said.
“I would like to encourage local investors and domestic banks to consider investing in the guaranteed bonds issued by the New International Phnom Penh Airport which is aimed at raising funds from local sources to develop the airport in Kandal province,” he said.
His remarks were made after the CAIC had issued the guaranteed bonds recently to raise funds to develop the airport construction.
Two domestic banks –Prince Bank and FTB Bank have invested $15 million each on the CAIC’s bonds.
“We have two banks which have invested in the CAIC’s guaranteed bonds already and we would like to see more domestic banks investing,” Mr Hun Sen said.
With three years maturity, the guaranteed bonds offer 5 percent interest per annum.
“Raising funds from domestic sources is aimed to show that we, ‘Cambodia Can Do” and use our domestic funding sources,” Mr Hun Sen said.
With a total cost of $1.5 billion, the New International Phnom Penh Airport’s construction is on schedule.
Cambodia Airport Construction Company (CAIC) is a joint venture jointly established by OCIC and the Secretariat of State for Civil Aviation of Cambodia in 2018 under the guidance of Samdech Techo Hun Sen to build the new Phnom Penh Airport, which is 20 km away from Phnom Penh on a total area of 2600 hectares. The construction project has 3 stages.
Cambodia Securities Exchange CEO HE Hong Sok Hour told Khmer Times that the bond issuance can be made through the securities market or individuals among the private sector.
“The bond transactions outside the securities market are to fill additional options to private sectors and investors. This process is short and fast,” Sok Hour said.
According to the CAIC, the company has spent some $375 million for its first stage and it will add another $467 million in 2022 to speed up the construction process.
The company says that the construction work for the first phase will cost $1.5 billion, not including the value of the land, and the airport, when completed and operational, can receive up to 13 million tourists a year.
The second phase will be completed by 2030, and can receive 30 million tourists per year, and the third phase will be completed in 2050, and can receive 50 million tourists per year.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
