The Bank of Lao PDR (BOL) announced on Tuesday that it will issue the third phase of its government bonds, worth LAK 3 trillion (approximately USD 160 million), to restore the stability of the national currency and address economic and financial difficulties in the country.
The bonds, which have a 6-month maturity and a one-time non-transferable interest payment of 15 percent per year, are open to individuals and legal entities residing in Laos, except commercial banks and non-banking financial institutions.
Individuals and legal entities can reserve purchases of any amount from LAK 100,000 to LAK 1 billion. As the BOL is a sovereign entity, the bonds are considered safe investments.
According to the notice, the bond will be a non-physical electronic “BOL Bill Certificate”, issued by the representative banks and distributed to the holders.
Interested individuals can place reserve their bonds from 6-8 September, through any of these seven designated commercial banks, including Banque Pour Le Commerce Exterieur Lao Public (BCEL), Lao Development Bank (LDB), Agricultural Promotion Bank (APB), Vietnam Joint Venture Bank (LaoVietBank), Joint Development Bank (JDB), Industrial and Commercial Bank of China Vientiane Branch (ICBC), and Bank for Investment and Commerce (BIC).
While many social media users expressed interest in purchasing bonds due to the good interest rates, others wondered whether it made sense to make such an investment due to the depreciation of the Lao Kip.
Early this year, the BOL issued the second phase of government bonds worth LAK 1 trillion, which sold out just a few hours after they went on sale.
The first phase of government bonds was issued in June 2022 with a value of LAK 5 trillion and an interest rate of 20 percent.
In July, the Ministry of Finance in Laos also announced its plans to issue THB 3.61 billion in bonds to fund the country’s national development initiatives.
