‘Successful’ bonds issue makes ANZ happy

ANZ Bank has responded positively to the successful conclusion of the 10-year inaugural sovereign bond issue.
“This marks an important milestone in the history of local financial markets, setting a strong precedent for future issuances in Papua New Guinea,” said ANZ PNG managing director Mark Baker.
“It is an important phase in the evolution of an emerging economy and will go a long way in establishing PNG’s identity in global financial markets.
“What has been a particularly encouraging feature of this issuance has been the quality of investor base (99 per cent consisting of asset and fund managers and insurance and pension funds).
“The majority of the investor base (83 per cent) has come from the US and European markets, which highlights the level of global attraction that PNG has garnered by way of this issuance.
“With the country facing some economic headwinds and ongoing uncertainties in global financial markets, an oversubscription of the issuance by over seven times is a testimony of the strong belief that the international investors have in PNG’s potential and growth story.
“In addition, acceptance of a 10-year tenor for an inaugural issuance by a sovereign rated B2/B is seen as a positive signal from international investors.
“The bonds have performed strongly in secondary trading post the issuance, and we have observed strong buy interest from investors which is natural given the high level of over subscription and demand.”