PHL conducts road show for panda bonds

ECONOMIC MANAGERS will be in China today until Friday to conduct a non-deal road show for the government’s plan to issue $200-million offshore yuan-denominated or “panda” bonds.

The Department of Finance ( DoF) said in a statement that the road show will involve briefings on the Philippine economy to potential Chinese bidders on their planned panda bond sale. The bond offer is “tentatively scheduled in the last quarter of the year ‘depending on market conditions.’”

The non-deal road show will start in Beijing and will also be held in Shanghai tomorrow.

Finance Secretary Carlos G. Dominguez III earlier said the panda bonds to be offered will likely be in three- and five-year tenors.

The government is currently securing approvals for the offer from the Inter-Agency Committee for Review of Foreign Loan Documents involving the Bangko Sentral ng Pilipinas and the Department of Justice.

The Philippines targets to borrow P727.64 billion this year, of which P711.776 billion

will be sourced from local creditors through Treasury bills and bonds. About P177.944 billion will be borrowed from external sources.

The China non-deal road show will be led by Mr. Dominguez together with National Economic and Development Authority chief Ernesto M. Pernia, Department of Budget and Management Secretary Benjamin E. Diokno, Department of Public Works and Highways Secretary Mark A. Villar, Department of Transportation Secretary Arthur P. Tugade, and the Bases Conversion and Development Authority President Vivencio B. Dizon.

Aside from the road show, the government officials will also firm up Chinese official development assistance loans for infrastructure projects, including the P2.7billion Chico River Pump Irrigation Project, the P10.86- billion New Centennial Water SourceKaliwa Dam Project, the P151.3billion North- South Railway Project South Commuter Line, and the P 4.607- billion BinondoIntra mu ros and P 1.376- billion Estrella-Pantaleon bridge grants.