MANILA, Philippines--A P5-billion bond float is in the works to finance a breeding program for increased milk production, according to the Dairy Confederation of the Philippines (DCP).

In an industry report prepared for Saudi Arabian investors, the DCP said it was considering arranging an Islamic bond float through the Al-Amanah Islamic Investment Bank of the Philippines.

The proceeds will be used to import breeding animals for selected government stock farms, animal centers and state university farms.

The DCP would package the bond issue, market the offspring and milk produced by the imported breeders and identify possible areas for breeding farms.

The Philippine Carabao Center will prepare the feasibility study.

DCP national chairman Danilo V. Fausto confirmed in a phone interview that his organization was considering issuing Islamic bonds or ?Sukuk?, but clarified that this would push through only if investors from Islamic countries such as Saudi Arabia signify their participation.