Political risk key in PNG’s sovereign debut
By JONATHAN ROGERS PAPUA NEW GUINEA bonds anyone? If all goes according to plan, the Pacific Ocean nation will soon make its debut in the international debt markets with a dollar issue led by Barclays, BNP Paribas and JP Morgan. Whatever the merits of such a deal as an investment proposition, you would have to say hats off to bankers from these three houses for escaping unscathed from the beauty contest for the deal held in Papua’s capital Port Moresby, perhaps the world’s most dangerous city. Port Moresby was last year ranked by the Economist Intelligence Unit as the second-worst place to live among the world’s 140 capitals. So-called “raskol” gangs control the city and are rather fond of robbing banks while toting M-16 machine guns. Never mind the mandate, you’d be lucky to escape the pitch with your life. The same is true of those brave blokes from the ratings agencies who came up with a Single B rating for the benighted country, assuming they paid a visit. That puts it on a par wit