Philippine President Rodrigo Duterte has approved the government's plan to raise up to $2 billion from the overseas debt market to fund this year's record budget and pay off liabilities, a senior official said on Tuesday (10/01). (Reuters Photo/Czar Dancel)

Philippines' Duterte Approves Up to $2 Billion Global Bond Issue

BY :KAREN LEMA

JANUARY 11, 2017

Manila. Philippine President Rodrigo Duterte has approved the government's plan to raise up to $2 billion from the overseas debt market to fund this year's record budget and pay off liabilities, a senior official said on Tuesday (10/01).

The government is "discussing with banking partners" the best time to sell the bonds, National Treasurer Roberto Tan told reporters.

The Philippines, one of Asia's most active issuers of US dollar-denominated bonds, has a history of issuing sovereign bonds early in the year to get favorable borrowing terms and raise the bulk of its foreign debt needs before the markets get more volatile.

Of the $2 billion, Tan said $500 million would be used to finance this year's 3.35 trillion pesos ($67.7 billion) national budget and the rest would be used to settle obligations.

The 2017 budget is 11.6 percent higher than last year's spending plan. It allows the government to spend more on roads, bridges, airports and meet a 6.5 to 7.5 percent economic growth target the president has set for the year.

To help fund the spending program, the government plans to raise a total 126.26 billion pesos by selling global bonds and from official development assistance loans. It also plans to raise 505.03 billion pesos via treasury bills and bonds.

Reuters

SHARE
TAGS:
#Policy