Market Summary

Local Currency Bond Market Size

The Lao People's Democratic Republic's (PDR) total local currency government bonds outstanding reached LAK26.6 trillion at the end of 2022, up from LAK24.0 trillion in 2021, due to the issuance of investment bonds and triangular bonds to finance domestic public investment. By the end of 2022, investment bonds accounted for 56.9% (LAK15.1 trillion) of total local currency bonds outstanding, followed by triangular bonds (24.6%, LAK6.5 trillion). Treasury bills issued via the Lao Securities Exchange and the Bank of the Lao PDR collectively accounted for 18.5% (LAK4.9 trillion).

Foreign Currency Bond Market Size

Total foreign currency bonds outstanding issued by the Government of the Lao PDR and the corporate sector rose to USD2.7 billion by the end of December 2022 from USD2.4 billion in 2021. Central government bonds used to dominate the Lao PDR's foreign currency bond market until 2018, with their share of the total declining from 56.3% in 2018 to 42.2% by the end of December 2022 as corporate bond issuances increased. In particular, hydropower companies-such as EDL Generation, Xayaburi Power, and Nam Ngum 2 Power-tapped the Thai bond market for financing.