Duterte approves up to $2-billion global bonds

PRESIDENT Rodrigo R. Duterte has approved the government’s plan to raise up to $2 billion from the overseas debt market to fund this year’s record budget and pay off liabilities, the Treasury chief said on Tuesday.

“[ W]e were informed that it was approved already but we will be expecting the copy of authority soon in the office,” National Treasurer Roberto B. Tan told reporters after the auction of three-year treasury bonds on Tuesday.

The government is “discussing with banking partners” the best time to sell the bonds, Mr. Tan said.

The Philippines — one of Asia’s most active issuers of US dollar-denominated bonds — has a history of issuing sovereign bonds early in the year to get favorable borrowing terms and raise the bulk of its foreign debt needs before the markets get more volatile.

Of the $2 billion, Mr. Tan said $500 million would be used to finance this year’s P3.35- trillion national budget and the rest would be used to settle obligations. To help fund the spending program, the government plans to raise a total P126.26 billion by selling global bonds and from official development assistance loans. It also plans to raise P505.03 billion via treasury bills and bonds.

In February 2016, the Philippines sold $2 billion worth of 25-year dollar-denominated bonds, priced at a record-low 3.7% coupon. —