Gov’t exploring more offshore debt sales

THE GOVERNMENT is lining up more offshore debt issues after the renminbi-denominated notes it sold as the week began met strong demand, the Budget chief said on Wednesday.

“We are exploring other bonds… Japanese bonds, the Samurai… we are exploring all the possibilities,” Budget Secretary Benjamin E. Diokno told reporters during a press briefing in Manila when asked whether more offshore bond sales are on the table this year.

The government raised 1.46 billion renminbi on Tuesday from its maiden “panda” bond sale that fetched a five-percent coupon for the three-year debt papers.

On Jan. 19, the government also raised $750 million from the sale of 10-year dollar-denominated bonds.

Finance Secretary Carlos G. Dominguez III said last January that the government may sell yen- denominated debt papers “towards the end of the year.”

“Meron pa kaming OFW ( We also have overseas Filipino worker) bond din, so we are planning to do that for Marawi,” Mr. Diokno added, referring to the Central Mindanao city that was destroyed in a five- month battle between government forces and Islamic State-inspired militants.

The Budget chief, however, said economic managers still “don’t have an idea” how much Marawi’s rebuilding would cost.

“So kung magkano ‘ yun, hindi namin alam. But we are ready to float the Marawi bond if necessary,” Mr. Diokno said, adding that the offer size would also depend on unsolicited proposals for the city’s rehabilitation and the amount of foreign assistance.

“More and more donors, dami gusto mag- donate (so many want to donate).”

Asked when the government plans to proceed with the OFW bond sale, Mr. Diokno replied: “Siguro mga second half ‘ yan.”

Mr. Dominguez had earlier asked the Treasury to study the possibility of floating debt papers worth P30 billion with a 20-year tenor for Marawi’s rehabilitation, adding that the offer would be packaged as retail Treasury bonds.

“I think it makes a lot of sense kasi many people would like to buy, parang sense of patriotism nila,” said Mr. Diokno.

The government plans to borrow P888.23 billion this year to plug a budget deficit capped at three percent of gross domestic product. About P176.27 billion of this amount will come from foreign creditors, while P711.96 billion will be borrowed locally.

The current administration plans to spend about P8 trillion on major infrastructure within its term in an effort to prod economic growth faster to 7-8% up to 2022, when President Rodrigo R. Duterte ends his six-year term, from 6.7% in 2017 and the 6.3% average clocked in 2010-2016 under former president Benigno S. C. Aquino III. —