IFC to help modernise PNGX Markets

PAPUA New Guineans stand to benefit from the modernisation of the nation’s capital market that is expected to boost investment, accelerate economic growth and help support a sustainable economic recovery.
The International Finance Corporation (IFC), a member of the World Bank Group, will now work with PNGX Markets Ltd (Papua New Guinea Stock Exchange) to deepen the nation’s capital market and boost access to long-term financing for companies in PNG.
This follows an agreement between the two entities which will see IFC now provide additional advisory services to PNGX, including reviewing its listing rules and other technical elements related to the issuance of corporate bonds.
PNGX chairman David Lawrence said: “We are pleased to be drawing on the IFC’s global expertise to help develop PNG’s capital market.
“This crucial programme is creating the potential for PNG investors and debt issuers to participate in a well-regulated, efficient and transparent corporate bond market, laying the groundwork for more international investment into the country and increased economic development across the nation.
“The reform programme will pave the way for the issuance of green and sustainability-linked bonds (SLBs), enabling PNGX to tap the rapidly growing sustainable debt market.
“Green bond issuance surpassed US$1.5 trillion (about K5.28 trillion) last year, reflecting surging appetite among investors.”
East Asia and Pacific, IFC Regional Advisory Services – Creating Markets manager Paramita Dasgupta said: “The market is still in its infancy in many emerging economies, or even non-existent, and so we are pleased to see PNGX taking steps that will see it offering sustainable investment options.
“We need to build the capacity of capital markets, which are crucial conduits for investment and economic growth and are also an absolutely essential tool to finance the transition to net zero.
“That means rolling out green bonds, sustainability-linked bonds and other sustainable debt initiatives much more broadly.”