The government is aiming to raise as much as $2 billion from a global bond issuance planned for early this year, a Treasury official said.
“I think we are almost ready for the launch of the ROP (US dollar denominated government bonds) but … [this will depend]on the market conditions,” Deputy Treasurer Maria Sharon Almanza told reporters.
The government, she said wants to raise $1 billion in new money and another $1 billion for liability management.
Finance Secretary Carlos Dominguez 3rd has said that new money will be mostly used for the government’s infrastructure program and budgetary support.
“Infrastructure spending is accelerating so we expect this acceleration to continue…,” he said.
National Treasurer Rosalia de Leon has also said that Fitch Ratings’ recent Philippine ratings upgrade would be positive for the government’s fund-raising program.
“This augurs well for our next global bond offering even as the market has priced our bonds much tighter than our ratings,” she said.
The Philippines completed a 25-year global bond issue last year, raising $2 billion as intended at a yield of 3.7 percent.
Of the $2 billion in proceeds, $1.5 billion was used for liability management while the remaining $500 million was used for general purposes.