GOVERNMENT is looking to issue US dollar or euro-deThe bonds are slated for the first half of 2025, the finance official said.
“[We’ve approved] a bond that could be two – US dollar and/or euro,” Treasury Secretary Ralph G. Recto told reporters on Tuesday.
He also added that the government will look to collect at least R300 billion from this issuance, which is the size of the foreign issuance.
The last Philippine dollar bond issuance was in August of this year. It raised $2.5 billion in the issuance of triple-tranche, global bonds denominated in US dollars.
In September, National Treasurer Sharon P. Almanza said that the National Government (NG) will no longer proceed with the planned program. euro bond issuance this year.
The National Government last issued euro bonds in April 2021, raising 2.1 billion euros (P122.4 billion) amid the coronavirus pandemic.
The government has $500 million to raise in the international debt market this year from its $5 billion external borrowing program.
Mr. Recto on Tuesday said the government is also planning to issue Sukuk and Samurai bonds next year.
“I think it’s a good time for the yen to go down so it’s in our favor. If we borrow from them, they decrease, you know. But most importantly, I think he wants to be on the radar screen of investors from Japan,” he said.
The Philippines last issued Samurai bonds in April 2022, raising ¥70.1 billion.
Mr. Recto said there is also a need for investors from the Middle East.
“Because there is food from the Middle East. He wants more people to buy our bonds, our notes, and so on and so forth. If they are financially willing to rulesurgery, why not?” he added.
The government began issuing Islamic debt in December 2023, raising $1 billion from the sale of Sukuk bonds priced at 5.5 dollars.
The government has set its borrowing plan at P2.55 trillion by 2025, of which P507.41 billion will come from foreign loans.
The government may benefit from using the foreign debt market next year as the US Federal Reserve’s easing is expected to reduce borrowing costs, said an economist at Rizal Commercial Banking Corp. Michael L. Ricafort in a Viber message.
However, gains could be offset by a stronger dollar and higher US Treasury yields, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.
“Timing is critical for the release as the greenback and the 10-year US Treasury continue to rise. President Trump supports the greenback and the 10-year yield,” Reyes Tacandong & Co. Senior Counsel Jonathan L. Ravelas likewise in a Viber message.
Mr. Rivera added that the demand for bond issuance in the Philippines could decrease due to the global economic instability brought about by Mr. – Aaron Michael C. Sy
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