PNG govt on tour to raise funds through bonds

1:39 pm on 20 June 2016

Papua New Guinea's government is this week visiting international financial hubs hoping to raise money on the offshore bond market.

The governor of PNG's Central bank, Loi Bakani, along with the secretary of the Department of Treasury, Dairi Vele, are scheduled to give presentations in London tomorrow, before heading to Boston and New York.

PNG has hired ANZ, Bank of China, JP Morgan and Société Générale to arrange meetings with potential investors in the hope of securing its debut international bond deal.

This comes as PNG's government struggles with a cash flow shortage and an economy impacted by a prolonged slump in global commodity prices.

PNG failed to raise US$1 billion on bond markets late last year.

Earlier this year its credit rating was downgraded by Moody's from B1 to B2, and it is now on stable outlook.

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