Post Courier Kina Bank Welcomes New PNGX Debt Market Issuance and Quotation Rules


The recent announcement of the Securities Commission’s approval of the new PNGX Debt Market Rules for the issuance and listing of corporate bonds will potentially be a game-changer for the capital markets in PNG.

Kina Bank Executive Managing Director, Business Partners and Wealth, Deepak Gupta, speaking at the PNG Energy Summit in Port Moresby, said Kina Bank welcomes the announcement and believes it could be a game-changer for investors. capital markets in PNG.

Mr. Gupta said this adds very attractive financing options and that corporate bonds can have a place in the capital structure of most cash-generating companies.

“Any company with the usual positive characteristics of profitability, strong governance and the like can participate and, importantly, it is not necessary to have a primary listing to issue a listing,” he said.

“For insurance, listed clients offer a new way to access capital that is not delusional, which can potentially increase equity returns.”

He said that for secured lenders, companies’ listed debt offers another avenue of funds at risk before secured debt to make projects such as energy projects potentially more bankable.

He said investments in listed bonds offer a new option that benefits from regulatory oversight, with a good return and appropriate liquidity from market participants.

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John A. Bogar