PH officials woo investors in London roadshow

Senior government officials are in London this week to showcase to English investors—mainly fixed-income traders—the latest economic achievements of the Philippines and its bright prospects for the medium term.

Finance Secretary Cesar Purisima will head the five-member Philippine government contingent at the so-called nondeal roadshow that aims to drum up interest for the country’s surging economy.

“We would like to impress upon investors outside the country that the Philippines will not merely sit on its latest achievements but will continue to work hard to ensure that recent economic gains are sustainable,” Purisima said in a statement.

Joining Purisima are National Treasurer Rosalia de Leon, Bangko Sentral Assistant Governor Cyd Tuaño Amador, Insurance Commission Commissioner Emmanuel Dooc and Government Services Insurance System (GSIS) president Robert Vergara.

Government roadshows are usually done ahead of sovereign bond issuances, which the state does to raise money to fund its local projects. The coming roadshow will follow the one held in the United States last December, which preceded the sale of $1.5 billion in government bonds.

Awareness of the strengths of the Philippine economy is vital not only in terms of securing investments but also in reducing borrowing costs.

In the first quarter, credit default swap spreads for Philippine fixed-income securities averaged 111 basis points, better than Thailand’s 146 bps and Indonesia’s 208 bps, and lower than the 171 bps recorded in the same period of 2010. CDS spreads are indicators of how risky market players see certain securities.

The Philippine economy, one of the fastest-growing in Asia over the past two years, should expand anywhere between 6.5 and 7.5 percent this year, between 7 and 8 percent next year, and between 7.5 and 8.5 percent in 2016, according to government targets.

Officials said these targets were attainable, noting that the growth slowdown to 5.7 percent in the first quarter was due largely to the temporary effects of recent natural calamities.