Sovereign bond roadshow yet to be done

The Bank of PNG is yet to announce a date at which the Government will go on a roadshow to the foreign capital markets.

The Department of Treasury says it is waiting for BPNG to confirm dates and could not comment any further.

The Government is seeking a sovereign bond in foreign capital markets in the order of $US1 billion.

The State will use its shares in the resource projects and some percentage of its share in the LNG venture to secure bonds.  

In a recent interview with LOOP News, Secretary of Treasury Dairi Vele said the Government will need to secure funds to execute the 2016 Budget allocations.

The Asia Development Bank (ADB) Pacific Economic Monitor analysis late last year stated that PNG may find it difficult to finance the 2016 Budget deficit because domestic sources of finance had dried up as commercial banks had reached their limit for exposure to Treasury bills.

Author: 
Joy Kisselpar