PH watching markets for possible borrowing

The Philippine government is closely monitoring the international debt markets for an opportunity to borrow, the Bureau of Treasury said yesterday.

National Treasurer Roberto B. Tan said the government is planning at least $750 million in offshore financing next year, but he also did not rule out the possibility of doing another foreign debt liability management.

“We are giving ourselves an opportunistic stand on this, if there is a good window, when there is very good opportunity and then we will consider it. Right no there’s no plan, although we monitor the market closely,” Tan said.

He also said the government will tap the international debt markets during a less volatile environment.

The Philippine government, traditionally among the first sovereigns that borrow overseas within the first few weeks of a new year, sold $20 million worth of 25-year bonds last January.

“We'll have to watch how the market is behaving from year on that’s why I am saying we don’t have any plan. We just have to be opportunistic if ever,” Tan said.

In January, the 25-year sovereign debt papers fetched a record-low coupon of 3.95 percent. A total of $1.5 billion of the bond proceeds were used to retire more expensive bonds maturing between 2016 and 2034 while $500 million was allocated to budget support.

The Philippines has, in recent years, reduced its reliance on the foreign commercial debt market for budget support due in part to a growing domestic capital market.

Under the 2016 proposed national budget, the Aquino administration plans to further trim down its foreign debt exposure in