Philippines eyes benchmark-sized global bond issue

Reuters

Posted at Dec 01 2014 02:53 PM | Updated as of Dec 01 2014 10:53 PM

MANILA - The Philippine government would prefer to sell a long-term, benchmark-sized bond issue when it returns to the offshore debt market, National Treasurer Rosalia de Leon said on Monday.

"We're looking at a longer term (bond), a benchmark of $750 million to $1 billion," she told reporters, adding there is demand for long-term issues though she declined to be specific on the tenor the government is looking at.

On Friday, de Leon said the government was on the lookout for market opportunities to "do a dollar funding or a liability management structure."

In January, Manila raised $1.5 billion from its first global bond sale after more than a year of absence from the offshore debt market.

The government is looking at sourcing as much as 14 percent of the government's borrowing requirement next year externally, including up to $750 million in commercial borrowing and $1.25 billion in program loans from multilateral financing institutions.

The balance of 86 percent will be raised from the local market.

The Philippines has aggressively pursued debt management schemes, including issuing local currency-denominated global bonds, to narrow its public debt as a percentage of gross domestic product.