Gov’t taps 8 banks for global bond float

The government has tapped eight banks to help raise funds as it plans a global bond float as early as January, finance officials said.

Finance Undersecretary Rosalia V. de Leon identified the banks as Citigroup, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JP Morgan Chase and Co., Standard Chartered Plc. and UBS AG.

The government plans to borrow a total of $4 billion from foreign lenders next year, of which $2.25 billion will be commercial borrowings while the remainder will come from official development assistance.

Last January, the Bureau of the Treasury was able to raise $1.25 billion from the issuance of global bonds.

Asked whether the situation might be the same next month, De Leon said things would depend on whether the markets would be receptive in January considering that it was not yet known how the financial situation in the United States and Europe would pan out.

National Treasurer Roberto B. Tan said the government would make next year’s first foray in the global bond market “in January at the earliest.”

“Right now, the global dollar bond seems to be more attractive than the global peso bonds, but that does not mean we are doing it,” Tan said.

He said monetary authorities gave the Treasury flexibility in the impending bond float, meaning that in terms of tenor, the agency could issue debt paper with a life of as long as 25 years.—Ronnel W. Domingo