China’s monetary authorities have approved the Philippine government’s planned maiden panda bond offering, the Finance department said.
“I am pleased to share with you that the issuance of panda bond was approved by People’s Bank of China and NAFMII, February 9,” the Bank of China was quoted as saying in a report to Finance Secretary Carlos Dominguez 3rd.
Bank of China is the lead underwriter and bookrunner for the panda bond issue. NAFMII or the National
Association of Financial Market Institutional Investors is a self-regulatory organization mandated to promote the sustainable development of the Chinese over-the-counter market.
The approvals, according to the Bureau of the Treasury, will allow the issuance to be launched as early as next month.
“The current plan is to launch in March. Of course this is subject to good window and competitive pricing. Will keep you updated,” National Treasurer Rosalie de Leon was also quoted as saying.
The government and Bank of China signed the underwriting deal, which spells out the terms and conditions of the $200-million offering, last November.
De Leon has said that the offering would diversify the government’s funding sources and provide benchmarks for other Philippine issuers.
“The bond issue will also complement the financial support from China for the implementation of critical infrastructure projects,” she also said.