The government plans to offer $1.0-$1.5 billion worth of bonds on the offshore market in the next few weeks. It is expected to tap three foreign banks — Credit Suisse, Deutsche Bank, and HSBC — to arrange its inaugural offering for the year, industry sources said.

A source in the government said the offering, which could make the Philippines the first in the region to tap the overseas debt market this year, had been approved by the central bank’s policymaking Monetary Board, which screens all public sector borrowings.

The Department of Finance plans to issue Philippine 10- and 25-year bonds, known in the market as ROPs, but will likely offer more 10-year paper than 25-year.

The government’s financial managers are awaiting the signal from the arrangers to launch the offering.

“It makes sense to be in the market when right opportunity is there,” National Treasurer Roberto Tan said.

Tan said the international financial market was “somehow favorable at the moment” than possibly in a couple of months when news of a deepening crisis in advanced economies could be expected.

Rizal Commercial Banking Corp. treasurer Jose Emmanuel Hilado said, “The market can easily absorb $1.0-$1.5 billion. I don’t think it’s going to be a problem. Support will likely come from the local banks.”

“It’s a good time. People are willing to invest at this time as they were sidelined last year and everybody is very liquid,” Hilado added.

Bankers interviewed by the Philippine Daily Inquirer said the government might make the offering early as this week or next and get this early a big chunk of its offshore borrowing requirement for this year.

Chinatrust (Philippines) treasurer Roland Avante said, “I think they will move ahead while the market is relatively good. There are other [Asian governments] that also plan to sell debt—like Indonesia and Korea. It’s better to be early as we don’t know what will happen the rest of the year. The crisis is not yet over.”

Earlier, the government said it planned $2.6 billion in foreign borrowings this year as a buffer against the global financial crisis. The plan was to limit the commercial bond component to $1 billion and raise the remainder from “soft” loans from multilateral and bilateral lenders.

Sources said, however, that if there was enough market interest in bonds the government would aim for as much as $1.5 billion in one tranche. With a report from Michelle V. Remo; with editing by INQUIRER.net