The Lao government is returning to the global bond market, seeking to tap international investors with a potential triple-C offering, less than a year after raising $300 million in what was its first dollar debt sale since 2019. The Lao People’s Democratic Republic has mandated Mitsubishi UFJ Financial Group and Seaport Global Holdings as joint lead managers for the possible issuance of a five-year senior unsecured bond, according to a person familiar with the matter. The notes are expected to be rated CCC+ by both S&P Global Ratings and Fitch Ratings, matching the sovereign ratings, the person said asking not to be named because the details are private.
Investor meetings across Asia, Europe and the US will start on Oct. 5, the person said. It would be the lowest-rated sovereign debt sale this year in Asia in the US dollar, according to data tracking publicly announced deals compiled by Bloomberg. It would follow a record $3 billion offering from Pakistan in September.
S&P rates Pakistan at B and Fitch’s rating is at B-. Laos sold $300 million of 11.25% notes due 2030 in November last year, marking its return to the international bond market after a six-year absence. The International Monetary Fund said earlier this year that the government intends to continue rebuilding market access to refinance more expensive debt, though it expects international market access to remain relatively constrained.
The latest mandate also follows a dollar bond sale by state-owned EDL-Generation Public Co. in August. The power producer, majority owned by state utility Electricité du Laos, raised $300 million through 11.125% notes due 2031 to refinance debt. Laos plans to use the proceeds from the latest debt sale plan to repay existing government debt, including commercial and bilateral obligations, as well as for general government purposes, the person said.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing