Dentons has advised Credit Suisse (Singapore) Limited as Global Coordinator and Citigroup Global Markets Inc as Joint Lead Managers and Bookrunners on PNG’s successful debut sovereign bond which closed on 4 October 2018. USD 500 million 8.375% Notes due 2028 were issued pursuant to Rule 144A and Regulation S of the US Securities Act and rated B2 by Moody’s and B by S&P.

The USD denominated sovereign bond will be used to refinance short term domestic debt and help fund essential works and services of the PNG Government. Among other benefits, it also increases foreign exchange reserves.

The issuance follows the USD 500 million syndicated sovereign loan arranged by Credit Suisse in 2017-18, another major financing in which Dentons was involved, advising the PNG Government on that occasion.

Investor appetite for the bond was beyond expectations following investor presentations in Singapore, Hong Kong, London, New York, Boston and Los Angeles.

PNG Senior Associate Wavie Kendino was in Singapore with the Deputy Prime Minister and Treasurer, Central Bank Governor and Treasury Secretary for the launch. Wavie describes it as a “once in a lifetime experience for a young Papua New Guinean excited about her country’s future.”

Dentons advised the investment banks on all facets of PNG law and, as sole PNG external counsel engaged for the deal, provided valuable ‘on-the-ground’ experience and perspective.

Dentons Partner and Head of PNG Office, Stephen Massa, commenting on the deal said: “I am incredibly proud to have led the Dentons team on this landmark transaction for PNG.”

“PNG has a great story to tell and it is very pleasing that the international financial markets have seen this. It is a milestone for PNG and a good news story for the host country of this year’s APEC Leaders’ Summit.

“A debut sovereign bond by a frontier market is no easy task. Not only does the investment offering need to meet strict credit and risk criteria, the government team appropriately resourced and available to undergo the demanding due diligence and roadshow exercise, but financial markets have to be just right. All this makes for a limited window of opportunity and explains why this transaction has been years in the making”.

The Dentons team was led by Partner and Head of PNG Office, Stephen Massa, who was assisted by Senior Associate, Wavie Kendino, and Associate, Theresa Kawi.