PTL set to make history with sale of bonds
PTL set to make history with sale of bonds
Petroleum Trading Lao Public Company (PTL) is preparing to sell bonds to both domestic and foreign investors to raise capital for the purchase of more oil and the expansion of its service station network.
The announcement was made at a press conference held on Friday, co-chaired by Vice Chairman and CEO of PTL Mr Chanthone Sitthixay, CEO of APM (LAO) Securities Co., Ltd. Mr Somphop Sakpunpanom, and CEO of Lanexang Securities Public Company Mr Nalin Silivongsith.
Mr Chanthone said PTL was an importer of fuel and petroleum products in Laos which it sold at petrol stations under the trademark PLUS and the company is now preparing sell bonds for the first time in Laos to both domestic and foreign investors.
The company will issue bonds in both Lao kip and US dollars. Bonds issued in kip will not exceed a value of 81 billion kip over a 2-3 year period, while it aims to sell not less than US$40 million worth of US dollar bonds within a 3 year period.
Mr Chanthone said this was a historic move as it was the first time a private company would sell bonds in Laos.
PTL will use the money gained from the sale of the bonds to buy oil from neighbouring countries while some will be spent on the expansion of its service station network around the country.
The sale is part of the company's strategy to fulfil its promise to shareholders to transform PTL from being a distributor to a trader after registering with the Lao Securities Commission in 2014, Mr Chanthone added.
Mr Somphop Sakpunpanom, acting on behalf of the company's financial advisor, said PTL has filed the requisite application documents with the Lao Securities Commission and expects to start offering the bonds for sale later this year.
I believe that PTL's announcement to sell the bonds will create a lot of excitement and interest on the Lao stock market because it will be a new product for investors. In addition, the sale of Lao kip bonds will spark interest among investors, he said.
PTL was the fourth company to be listed by the Lao Securities Exchange and is the second largest importer of fuel and petroleum products in Laos. Its products are distributed through petrol stations under the trademark PLUS, as well as to construction projects, transport companies and various manufacturers.
There are currently five companies registered on the Lao Securities Exchange, namely the EDL Generation Public Company, Banque pour le Commerce Exterieur Lao Public, Lao World Public Company, Petroleum Trading Lao Public Company, and the Souvanny Home Centre Public Company.
