Listing Debt Securities
At PNGX, we can provide your company or trust with invaluable access to retail and institutional investors and exposure throughout the world. By listing with PNGX, you will enter a new phase in your organisation’s development where you will become part of a select group of organisations on the global capital stage. Listing debt securities on PNGX can help companies achieve their growth ambitions and successfully make the transition to public ownership.
Why list debt securities?
Listing is the process of issuing debt securities which can be traded on the stock exchange.
The world’s stock exchanges have been listing companies, trusts and other products for hundreds of years, so the benefits of listing are well known to the market.
You need to examine a wide range of factors in order to gauge is your organisation ready to list.
Listing debt securities may be attractive to a company which already has shares listed on PNGX as an alternate source of funding to raising new equity or to bank financing.
Listing debt securities may be attractive to an unlisted privately owned company for a number of reasons. It may be an alternate source of funding instead of raising equity capital and diluting ownership. It may be seen as a stepping stone to a future initial public offering (IPO) as it makes the company visible to the market, allows the company to be familiar with being listed and makes a future IPO easier.
Listing debt securities may be attractive to a State Owned Enterprise (SOE) as it may allow the SOE to refinance existing debt.
In some cases, institutional investors will only invest in listed assets, so listing debt securities may make it easier to attract such investors
Listing debt securities may assist a company to obtain a credit rating from an international credit rating agency, which may in turn make it easier and cheaper to raise future funding.
Who can list debt securities?
Listing of debt securities is available to private companies, companies which are already listed with public ownership or other bodies such as State Owned Enterprises.
There is no minimum size for the value of debt securities which can be listed. PNGX leaves it to the market to determine the minimum viable issuance for each issuer.
There is no minimum number of holders of debt securities which can be listed. A class of listed debt securities may be held by only one holder.
How do organisations list debt securities?
Under the Capital Market Act 2015, an issuer must (subject to the relief referred to below) prepare a prospectus in order to issue debt securities to investors. The issuer also applies to PNGX to have the debt securities quoted and listed.
The Securities Commission of PNG has granted relief to issuers of debt securities to wholesale investors to issue such securities using an information memorandum only. Wholesale investors are investors of a type referred to in the relief Order. The issuer may not issue debt securities to retail investors and retail investors cannot buy these securities on the market.
The timetable for listing depends on the complexity and scale of the transaction, how quickly the listing can be prepared and how quickly funds are received from investors. For process of quoting and listing a wholesale corporate debt security has been designed to be as quick as possible.
The road to quoting and listing usually involves the following steps:
Step 1: Appoint advisers
Step 2: Talk to PNGX
Step 3: Prepare and lodge prospectus or information memorandum
Step 4: Apply to PNGX
Who can invest in debt securities?
At present, the PNGX Debt Market is limited to wholesale corporate debt securities only.
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