PNGX gets approval for debt market rules

THE Papua New Guinea national stock exchange (PNGX), has received the Securities Commission’s approval for the new PNGX Debt Market Rules.
They allow a company to issue corporate bonds and have those bonds listed on PNGX where they can be traded.
A PNGX statement said corporate bonds were a type of debt security issued by a company.
The company may be listed on PNGX, it may be privately owned, or it may be a State-owned enterprise.
Initially, bonds traded on PNGX will be limited to wholesale corporate bonds.
Retail investors will not be able to invest in wholesale corporate bonds within the first year.
This is to allow the market to become familiar with the products before opening it up to the retail sector.
PNGX chairman David Lawrence said: “Receipt of Securities Commission approval is very exciting for PNGX.
“It is part of our ongoing commitment to develop the PNGX capital markets, provide companies with new ways of raising funding and providing Papua New Guinean investors with new investment opportunities.”
PNGX general manager Elizabeth Wamsa said: “We are in early discussions with some potential issuers of wholesale corporate bonds.
“We are hopeful that we can bring at least one of them to the market soon.
“We will be publishing materials explaining this new market to both investors and companies in coming weeks.”