Souvanny Home Center Issues First Corporate Bonds in Laos

Souvanny Phonetong branch. (Photo: Souvanny).

Souvanny Home Center Public Company has become the first company in Laos to issue corporate bonds via the Lao Securities Exchange.

The construction materials and home center company has issued USD 3 million of corporate bonds with a fixed value of USD 50,000 per unit, an annual interest rate of 7.50%, and a term of four years.

According to a statement issued by Souvanny Home Center, it issued the bonds to obtain capital for its business demands and to strengthen growth, as well as for sustainable development.

The issuance of the bonds was officiated in early June during a ceremony attended by Deputy Governor of the Bank of Lao PDR, Mrs. Khankeo Lamaningao, with whom the company signed an agreement of debenture with the Lao Securities Exchange.

The company, which was founded in 1988, issued 25 million shares to the public during its initial public offering (IPO) and was listed on the Lao Securities on December 11, 2015, with a total registered capital of LAK 330 billion or over USD 17 million.