BANGKOK: Laos, Southeast Asia's smallest economy, plans to sell its first foreign-currency bonds to finance electricity projects as part of efforts to become less dependent on international aid.
The communist-run nation may sell as much as 2.5 billion Thai baht (100 baht = RM11.11) of five- to 15-year notes backed by royalties from hydropower plants, said Chiemi-Jamie Kaneko, a financial markets official at the Asian Development Bank, which is advising the Laos government.
"The world has a view that we are closed, but actually we are open," Boualith Khounsy, a director at the Laos Ministry of Finance's fiscal policy department, said in an interview in Bangkok. "We have to find a way to mobilise funds and strengthen our system."
Landlocked Laos is seeking global investors to help it pay for new infrastructure projects and create jobs for its 7 million citizens, nearly half of whom are younger than 16. It plans to open a stock exchange by October 2010 and join the World Trade Organisation two years later, reducing dependency on borrowing from international organisations and donors.
this is great news, anything to advance our economy is good i believe. especially issuing bonds. that is a great way to strengthen our economy and become more advance economically as a country.
