Laos lists US$500 million bond in Hong Kong and enters EMBI
The government's largest international bond offering has a 5.5-year maturity and drew orders from 86 investors, according to the Ministry of Finance.
Laos has listed a US$500 million government bond in Hong Kong, its biggest international offering to date, according to the Ministry of Finance. The issuance also brought a Lao government bond into the Emerging Markets Bond Index (EMBI) for the first time.
Deputy Prime Minister and Minister of Finance Santiphab Phomvihane headed the Lao delegation at the October 29 gong ceremony marking the listing on the Hong Kong Stock Exchange.
The ministry said demand exceeded the offered amount by 2.9 times. Orders came from 86 investors across Asia, Europe, Africa, the Middle East and the United States. The bond matures in 5.5 years.
The ministry said the listing would support efforts to diversify government financing and strengthen investor confidence. EMBI is a benchmark that international institutional investors use to assess emerging-market debt.
Separately, S&P Global Ratings raised Laos' sovereign credit rating to B- from CCC+ after reviewing its economic and financial conditions. The assessment involved cooperation with the Finance Ministry's technical team and other relevant parties.
