Some samurai bond proceeds to help redevelop Japan property
SOME of the proceeds from the offer of yen-denominated bonds will be used to redevelop properties owned by the Philippine government in Tokyo, the Finance secretary said on Tuesday.
“[The] samurai bond [funds] will be spent in Japan. We will reconstruct the embassy there,” Finance Secretary Carlos G. Dominguez, III said after the Treasury bond auction yesterday.
National Treasurer Rosalia V. de Leon added that Mr. Dominguez’s intention is for a property in Tokyo’s Shibuya ward to be “redeveloped.” The other uses of the proceeds from the offer, which will take place “within the year,” will refinance previous bond issues and also represent new borrowing.
“We may borrow some more… So partly refinancing, partly new debt, partly for that project,” Mr. Dominguez said.
The current Philippine embassy is in the Roppongi district of Tokyo’s Minato ward. It is unclear whether the Shibuya project represents a firm plan to move the embassy. Last week, Mr. Dominguez said he is looking at redeveloping a government-owned 2,500-square meter property in Nampeidai in the Shibuya ward, with plans to build three structures in the area.
Mr. Dominguez said the structures will include a building for the Philippine embassy and chancery, as well as apartments for the embassy staff, among others.
Ms. De Leon added that the amount to be raised will be determined by the cost of the redevelopment plan.
“Whatever the amount is, [that will we] issue in the samurai [bonds],” adding that they may issue additional amount “for their budgetary requirements.”
Asked for a preliminary estimate of the issue size, Ms. De Leon said between “$500 million to $700 million.”
Aside from the samurai bonds, the government will also issue yuan-denominated bonds, expected next month.
Last week, Ms. De Leon said the Treasury is looking at offering three- to five-year year papers, with the People’s Bank of China and National Association of Financial Market Institutional Investors having approved the issuance.
In November, the government and the Bank of China signed the underwriting agreement for the country’s maiden issue of $200 million worth of yuan-denominated securities. —