Approval Of Debt Market Rules

PNGXPNGX PNG National Stock Exchange, Papua New Guinea’s national stock exchange, has received the Securities Commission’s approval of the new PNGX Debt Market Rules.

The new PNGX Debt Market Rules allow a company to issue corporate bonds and have those bonds listed on PNGX where they can be traded.

Corporate bonds are a type of debt security issued by a company. The company may be listed on PNGX, it may be privately owned, or it may be a State Owned Enterprise (“SOE”).

Initially, bonds traded on PNGX will be limited to wholesale corporate bonds. Retail investors will not be able to invest in wholesale corporate bonds within the first year.

This is to allow the market to become familiar with the products before opening it up to the retail sector.

“We are in early discussions with some potential issuers of wholesale corporate bonds. We are hopeful that we can bring at least one of them to the market soon,” said Elizabeth Wamsa, PNGX General Manager. “We will be publishing materials explaining this new market to both investors and companies in coming weeks,” said PNGX Chairman, David Lawrence.