MANILA, Philippines - The government could raise P100 billion ($2.2 billion) by selling retail treasury bonds, more than targeted, and the government could change its borrowing plan for the rest of 2010, a senior official said on Thursday.
National Treasurer Roberto Tan said a maximum P100 billion could be raised from a sale of retail bonds that closes next Tuesday because of strong market demand, having earlier said the government was not planning to raise that much.
Manila sold P25 billion of the bonds at an auction on Tuesday, and said it would sell a daily maximum of P10 billion of bonds six days to the public as well as a still undetermined amount to state firms.
Last year, it raised P114 billion in a retail issue.
"We will adjust accordingly, depending on what we get," Tan told reporters when asked how the retail sale would impact the government's borrowing plan for the rest of the year.
The government, which took office six weeks ago, has said it will borrow an extra P60 billion in 2010 after it raised the budget deficit target to P325 billion, or 3.9% of GDP, from around P300 billion, or 3.6% of GDP.
The foreign borrowing target has been raised to P254.8 billion from P220.5 billion, and domestic debt issues have been increased to P511.6 billion from P488.1 billion.
The Philippines, Asia's largest sovereign issuer of foreign currency debt, plans to raise at least $500 million from a global peso bond issue before the end of the year.