Milbank LLP acted as international counsel to The Independent State of Papua New Guinea (“PNG”) on its debut sovereign bond issuance of US$500,000,000 8.375% Notes due 2028.
PNG has been working towards its first international bond deal for nearly two decades and the transaction comes after four prior attempts during that time. The issuance attracted strong investor interest, drawing over $3.3 billion in orders at final pricing at a time of particular volatility for emerging market credits.
The deal demonstrates PNG’s ability to successfully tap into the international bond markets ahead of its turn hosting the upcoming Asia-Pacific Economic Cooperation (“APEC”) summit in November 2018 – the largest event PNG has hosted since its independence from Australia in 1975. In addition, and perhaps more importantly, the transaction provides PNG with more credibility with the international investment community and is a vote of confidence in PNG’s ability to deliver on their growth plans in the coming years.
The Hong Kong Milbank team was led by Global Capital Markets partner James Grandolfo, with associates Kurt Sherwood and York Wu.
Mr. Grandolfo said: “This inaugural bond issuance is a remarkable and historic achievement for The Independent State of Papua New Guinea and Milbank is proud of the role we played in bringing it to fruition. After decades of setbacks fueled by challenging economic conditions, PNG’s continued effort and dedication has resulted in a successful bond issuance that will significantly benefit the nation’s economy. The success of the deal is a testament to the progress that PNG has made on both the macroeconomic and fiscal front over the last few years and places a spotlight on the investment opportunities present in this key emerging market in the years to come.”
