PNGX plans for debt market

PAPUA New Guinea’s national stock exchange (PNGX) has released draft rules for a proposed new PNG debt market and has invited comment on the proposed rules.
PNGX (formerly known as POMSoX), according to a statement was proposing to establish a new debt market for trading of State and private sector debt securities which would operate alongside the existing PNGX equity market. The comment period end on July 31 and copies of the draft rules are available from PNGX.
It was proposed that, subject to the Capital Market Act 2015, the government and private sector debt markets would be accessible to sophisticated and retail investors.
“We are pleased to be closer to delivering on two key elements of the National Financial Sector Development Strategy,” PNGX chairman David Lawrence said.
“Development of a government and private sector debt market is an important building block for the development of the PNG capital markets and a significant development for PNGX.
“Papua New Guinean investors looking to receive a steady stream of income have had a limited range of choices.
“Government and private sector bonds traded on PNGX will present an attractive alternative.”
Earlier this year, the Government launched the Financial Sector Development Strategy (FSDS), which recognised that a key building block to redeveloping the country’s capital markets was the development of a secondary market in government securities.
Once progress had been made on that, attention could turn to the steps needed to further develop the secondary market in private sector debt and equity securities.
The FSDS seeks to make Port Moresby at least as attractive a centre for national firms to raise debt and equity capital as is Sydney.