VIENTIANE, Feb 4 (TNA) – Finance Minister Thanong Bidaya has held talks with his Laotian counterpart Chansy Phosikham on issuing a baht-denominated bond by the Vientiane government under the Asian Bond Market Initiative to be used to finance Laos' hydropower dams, including the Nam Nguem II .The talks were held Friday here in the Lao capital of Vientiane. Mr. Thanong said the baht bond would provide mutual benefit to the two neighboring countries and enhance bond-market development within Asia.Laos would gain from the plan as the costs would not be high and it could develop money and capital markets, prepare for mobilizing funds in the future and gain experience from bonds being issued in its neighboring country, Mr. Thanong said. Land-locked Laos is expected to use the baht-bond issue as a springboard for future fund-raising on the international market, and its credit-rating system would be established, the Thai finance minister said.Thailand, he said, would gain from having more diversified financial products in the local debt market.The Nam Nguem II hydropower dam project--the first to be financed by the baht-denominated bond--is valued at about US$30 million, and a portion of the electricity produced will be exported to Thailand.Mr. Thanong took advantage of the opportunity of the meeting to invite his Lao counterpart to attend the 1st Asian Cooperation Dialogue Finance Ministers Meeting to be hosted by Thailand later this year. (TNA)--E111
Thailand to help Laos finance hydropower dams VIENTIANE, Feb 4 (TNA) – Finance Minister Thanong Bidaya has held talks with his Laotian counterpart Chansy Phosikham on issuing a baht-denominated bond by the Vientiane government under the Asian Bond Market Initiative to be used to finance Laos' hydropower dams, including the Nam Nguem II .
The talks were held Friday here in the Lao capital of Vientiane.
Mr. Thanong said the baht bond would provide mutual benefit to the two neighboring countries and enhance bond-market development within Asia.
Laos would gain from the plan as the costs would not be high and it could develop money and capital markets, prepare for mobilizing funds in the future and gain experience from bonds being issued in its neighboring country, Mr. Thanong said.
Land-locked Laos is expected to use the baht-bond issue as a springboard for future fund-raising on the international market, and its credit-rating system would be established, the Thai finance minister said.
Thailand, he said, would gain from having more diversified financial products in the local debt market.
The Nam Nguem II hydropower dam project--the first to be financed by the baht-denominated bond--is valued at about US$30 million, and a portion of the electricity produced will be exported to Thailand.
Mr. Thanong took advantage of the opportunity of the meeting to invite his Lao counterpart to attend the 1st Asian Cooperation Dialogue Finance Ministers Meeting to be hosted by Thailand later this year. (TNA)--E111
