The Lao Securities Exchange will start trading bonds in early 2014, marking the country’s maiden venture in the government bond trading at the bourse.
The exchange, established in 2011, is one of the smallest in the world in terms of market capitalisation. Currently, only two stocks are traded at the exchange – those of state-controlled lender Banque Pour Le Commerce Exterieur du Lao Pcl and power producer EDL-Generation Pcl – with a combined market capitalisation of $1.14 billion.
The exchange will also expand the number of listed stocks to six by 2014. The bourse and the regulator, the Securities and Exchange Commission, have streamlined the listing approval process and have been more aggressive in persuading domestic companies to list themselves. Companies can now apply for the listing to either the stock exchange or to the Securities and Exchange Commission.
Lao PDR has about $640 million of outstanding local currency government bonds. Recently, in May 2013, it raised $46.7 million by selling its first baht-denominated bonds to Thai investors.
