The National Bank of Cambodia (NBC) announced that banks and microfinance institutions (MFIs) with total equity of approximately $15million or above can now issue corporate bonds or list equity securities on the Cambodian stock market, a move industry insiders claim will help reduce reliance on foreign borrowings. According to the central bank’s prakas issued on September 27, financial institutions can issue equity securities at a maximum of 20% of the company’s voting share and can issue debt securities at rate that does not exceed 20% of total assets. Seng Chan Thoeun, head of corporate finance at SBI Royal Securities, said that the central bank’s regulations were in line with its Financial Sector Development Strategy 2016-2025 which encourages financial institutions to issue equity and debt securities. He added that this was positive development in establishing a vibrant capital market in Cambodia that does not rely on short-term customer deposits, but allows for larger long-term funding that can be mobilized to accelerate financial sector growth. (Source: Phnom Penh Post)