• Gov’t set to issue $2-B global bonds

The government is set to issue $2 billion in dollar-denominated global bonds to raise fresh money for the government’s programs and at the same time manage its liabilities, according to the Bureau of the Treasury (BTr).

In an interview, National Deputy Treasurer Ma. Sharon Almanza said the government would float $2 billion in global bonds, with $1 billion coming in the form of new money and another $1 billion for debt swap transactions.

According to Almanza, the government is “almost ready” to launch the global bond issuance after the go signal from the US Securities and Exchange Commission (SEC).

“We just got the feedback that they will not conduct a full review, so we would just line the issuance. I think we are almost ready for the launch of the bonds,” she said.

National Treasurer Rosalia de Leon said the US SEC usually reviews the registration of Philippine bonds.

“Sometimes they look into the reforms, what were the accomplishments done by the previous one and what are the continuity of the policy of the new one,” De Leon said.

Meanwhile, Finance Secretary Carlos Dominguez said the government is still awaiting the approval of the People’s Bank of China on the issuance of renminbi-denominated bonds.

“What I heard was that the approving authority in China changed the rules, applicable for this period. So there was a question, do we fall under the new rules or do we fall under the old rules? My understanding was, Bank of China was able to convince the regulator that we should be under the old rules,” Dominguez said.

Despite this, Dominguez said the government is hoping for the quick approval of the issuance.

The government borrows from both local and foreign lenders to pay maturing debt and to plug its budget deficit.

Foreign financing for 2018 is programmed at $3.456 billion or P176.26 billion, corresponding 20 percent of the P889.51 debt ceiling set next year. Domestic credit will take up the remaining 80 percent, at P711.8 billion.