Treasury: Investors ‘enthusiastic’ about PH’s upcoming panda bond sale
Potential investors expressed enthusiasm about the Philippine government’s upcoming panda bonds issuance during the roadshow held in Shanghai, China late last month, National Treasurer Rosalia V. de Leon said.
“We met about 13 potential investors, a combination of banks and asset management corporations. Basically, they are very enthusiastic about the growth narrative of the Philippines. It’s the first time that we’re doing this on an investor roadshow, on a non-deal basis, anticipating that eventually the Philippines would make its first footprint in the panda market,” de Leon told reporters recently.
Panda bonds are yuan-denominated debt paper issued in China by foreign governments or companies.
The Philippines will be the first Asean country to issue panda bonds.
“They are enthusiastic about what would be the pricing, the tenor, and how it will also provide some liquidity support. The Bank of China will also be there to provide that kind of liquidity,” de Leon added.
Finance Secretary Carlos G. Dominguez III had said they plan to issue $200 million in three- to five-year panda bonds by October or November.
“We were telling them that right now, we are getting internal and external approvals, (such as) from the People’s Bank of China,” de Leon said, referring to the mainland’s central bank.
The Monetary Board, the Bangko Sentral ng Pilipinas’ highest policymaking body, already approved the planned panda bond issuance in principle.
“We will have continued discussions with them (investors), particularly on the emerging economic developments. They are waiting for the results of the Train (Tax Reform for Acceleration and Inclusion) and also our financing for the ‘Build, Build, Build’ program. We have established that kind of consultative relationship with the investors,” according to de Leon. /jpv
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