Laos plans 4th baht bond issue worth Bt12 billion
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Thailand's Finance Ministry has approved the Lao government's plan to raise issue baht-denominated bonds worth Bt12 billion, to finance the neighbouring country's economic development.
The permission was granted on April 30.
According to Adisorn V. Singhsacha, managing director of Twin Pine Consulting Co Ltd - a financial consultant for this issuance, this would be the fourth such issuance of baht-denominated bonds by Laos' Ministry of Finance after the first issue in May 2013.
Funds raised from this issuance are intended to be spent on Laotian economic development and investment in projects that support government income and ready the country for the forthcoming Asean Economic Community (AEC), said Rithikone Phoummasack, deputy director general, External Finance Department, Ministry of Finance of Lao PDR.
Tris Rating is assigned to rate the 3-year bonds while the filing to the Securities and Exchange Commission of Thailand is underway. The bonds will be offered throught Thai commercial banks sometime around June this year.
Laos' average economic growth in the past five years (2009-2013) was 7.9 per cent.
