Papua New Guinea Tries to Debut in a Challenging Bond Market

A planned $500 million bond sale from Papua New Guinea, a country that has tried and failed to sell foreign debt before, will test whether investors are still receptive to riskier borrowers after a selloff in emerging markets, The Wall Street Journal reported. The offering could conclude this week, and would mark the first sale of junk-rated sovereign-dollar debt since July, when Angola sold $500 million in 30-year bonds, according to Dealogic. In recent months, rising U.S. interest rates and a stronger dollar have hit emerging-market stocks and bonds. That has made it harder for developing nations and companies to borrow, especially those with junk, or below investment-grade, credit ratings. A young democracy grappling with crime, corruption, and natural disasters, Papua New Guinea met international investors in 2013 and 2016 but didn’t sell dollar bonds. Read more. (Subscription required.)