US investors keen on PH bonds

National Treasurer Rosalia V. de Leon. INQUIRER FILE PHOTO

MANILA, Philippines–United States-based fixed-income investors have expressed “a lot” of interest in the Philippines on the back of the fiscal reforms implemented by the Aquino administration, a finance official said.

On the sidelines of last week’s Philippine Development Forum in Davao City, National Treasurer Rosalia V. de Leon told reporters that the non-deal road show held in Boston, Los Angeles, New York and Philadelphia in the United States last month attracted portfolio investors, who were very keen on pouring money into the country’s capital markets.

In particular, fixed-income investors are looking at Republic of the Philippines or ROP bonds, she said.

“They (US investors) don’t have a lot of worries with regards the Philippines. We continue to be a very solid credit story among emerging markets,” De Leon said.

According to De Leon, American investors welcomed the string of recent positive developments in the Philippines, such as the strides made toward achieving lasting peace in Mindanao through the establishment of the Bangsamoro entity, as well as the opening up of the banking system to foreigners.

De Leon said Philippine government officials had invited investors to consider the investment opportunities to be presented by the programmed $750-million offshore bond issuance set for next year, although she declined to provide a specific timetable.

Also, the Philippines might pursue liability management similar to that conducted in Japan early this year, she said.

“The exercise to trim down our debt burden continues,” De Leon pointed out.

US investors, however, expressed concerns over slower government spending following the controversy involving the Disbursement Acceleration Program (DAP), according to De Leon. “But we explained that the government can put in place a supplemental budget and we’re also eyeing savings from the 2015 budget,” she said.

The Supreme Court had ruled that DAP, a stimulus package aimed at fast-tracking public spending to spur economic growth, was unconstitutional.

Finance Secretary Cesar V. Purisima and Bangko Sentral ng Pilipinas Assistant Governor Ma. Cyd N. Tuaño-Amador were also part of the Philippine delegation to the US road show.