Allen & Overy has advised Bangkok Bank Public Company Limited and Thanachart Bank Public Company Limited, as lead arrangers, in relation to the Ministry of Finance of the Lao People’s Democratic Republic’s THB7 billion sovereign bond issuance.
The issuance comprises four tranches including THB1,779,400,000 4.3% notes due 2021, THB2,543,900,000 5% notes due 2023, THB541,500,000 6% notes due 2028 and THB2,135,200,000 6.45% notes due 2030. Proceeds of the bonds will be used for general purposes by the Government of the Lao People’s Democratic Republic, including a number of investment projects and to repay existing loans from Thai financial institutions.
 
With continued economic growth in the Cambodia, Laos, Myanmar and Vietnam (CLMV) markets, Thailand offers a strong platform for CLMV issuers to secure funding. This transaction is a prime example of the Asian Development Bank’s Asian Bond Markets Initiative (ABMI) which supports developing best practice standards to foster viable bond markets across ASEAN, as well as promotes financial market integration and cross-border bond transactions within the region.
 
The Allen & Overy team was led by partner Stephen Jaggs with support from lawyers in our Bangkok and Singapore offices including partner Jeremy Stoupas, Bangkok-based counsel Doungporn Prasertsomsuk and Singapore-based associate Ming Wei Loo.