WEWAK - Peter O’Neill is taking Papua New Guinea global this year in an attempt to raise the first US$500 million Eurobond and the nation is bracing itself for judgment from the international financial markets on its bankability.
The international money markets will make a decision on whether Mr O’Neill and his lead advisers Secretary Vele and Secretary Lupari have their confidence in investing this large amount of money under their leadership of PNG Inc.
Also important will be the leadership role of the governor of the central bank in managing the fallout of either a successful or negative outcome of the bond offering.
This event is a big one for PNG and if Mr O’Neill successfully pulls it off he will change the many negative perceptions the country has of him at the moment and channel them into something more positive for the country.
The smooth-talking Vele and Lupari will also for the first time be critically judged by the financial markets on their ability to manage PNG Inc.
Like many people, I can’t wait for the final verdict of the market. PNG has been toying with an international bond offering since 1994.
But the lukewarm reception the idea has received from the money market during road shows in the past has resulted in a number of deferrals.
Hopefully this one will be successful and will complement PNG’s entry into the world financial trading system and sit well as PNG chairs APEC 2018 later this year.