PTL set to issue bonds next month
PTL set to issue bonds next month
Petroleum Trading Lao Public Company (PTL) will begin to sell bonds in both Lao kip and US dollars next month.
The company submitted its bond issue proposal to the Lao Security Commission Office (LSCO) in October this year. Funds from the bonds will be used to purchase large quantities of oil from overseas suppliers and expand its service station network according to the company's strategy stated in the prospectus changing PTL from a �Distributor� to a �Trader�.
The bond issue will be in two currencies not exceeding 81 billion kip (LAK) for a period of 2 or 3 years, and not less than US$40 million for a period of three years.
PTL expects the bonds in US dollars will be bought by foreign investors, business partners and organisations, while bonds in Lao kip would be sold to domestic and foreign private investors, a senior official from the company said.
�Most of the buyers are our business partners from Thailand and some other countries,� he added.
The bond issue should attract investors to the capital market because it is a new financial services product for Laos, though PTL has been rated by Trist Rating at BB level.
The company was confident their bond issue would attract more investors who would be satisfied with PTL's future business development plan for profitability and financial stability.
Petroleum Trading Lao Public Company 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 �PLUS� brand as well as to construction projects, transport companies and various manufacturers.
There are currently five companies registered on the Lao Securities Exchange, namely EDL Generation Public Company, Banque pour le Commerce Exterieur Lao Public, Lao World Public Company, Petroleum Trading Lao Public Company, and Souvanny Home Centre Public Company.
