Gov’t eyes bond issuances in Japan, China for infra planBy: Ben O. de Vera - Reporter / @bendevera
INQ Philippine Daily Inquirer / 05:46 AM September 30, 2017
Dominguez
The government is mulling over the issuance of samurai bonds in Japan while firming up the upcoming sale of panda bonds in China, Finance Secretary Carlos G. Dominguez III said.
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From Wednesday to Friday, they moved to China to meet with Chinese government officials also to pitch infrastructure projects to be constructed under the ambitious “Build, Build, Build” program aimed at ushering in the “golden age of infrastructure.”
In Shanghai, the Department of Finance embarked on a non-deal roadshow to promote the upcoming issuance of panda bonds by the Philippine government.
Dominguez had said they planned to issue $200-million in three- to five-year panda bonds by October or November. Panda bonds are yuan-denominated debt paper issued in China by foreign governments or companies.
The Monetary Board, the Bangko Sentral ng Pilipinas’ highest policymaking body, already approved in principle the planned panda bond issuance while the Philippine government was in the process of also securing approvals from the People’s Bank of China (PBOC)
“The panda bond market is regulated by China’s central bank, the PBOC. As such, any potential issuer first applies through the PBOC prior to any other Chinese regulator. As of the moment, we are working with the Bank of China on the internal and external approval by the PBOC. The terms have to be discussed further,” Dominguez said.
In general, “our plan of borrowing 80 percent from the domestic market and 20 percent in foreign currencies remains unchanged. We will therefore remain active in the foreign markets,” according to Dominguez.
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Philippines to sell first panda bonds this weekABS-CBN News
Posted at Mar 19 2018 04:01 PM
http://news.abs-cbn.com/business/03/19/18/philippines-to-sell-first-panda-bonds-this-weekMANILA - The Philippines will issue this week its first ever yuan-denominated bonds, the Bureau of Treasury said Monday.
The 1.46 billion yuan (P12 billion) panda bonds have a three-year tenor, and will be issued in the onshore Chinese bond market on March 20, while the settlement is on March 23.
The bonds, which are rated "AAA" by China's Lianhe Credit Rating Co Ltd, will be used to help fund government infrastructure projects and other financing requirements, officials in Manila said.
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Panda bond issue opens China market to Philippines firmsLawrence Agcaoili (The Philippine Star) - March 22, 2018 - 12:00am
https://www.philstar.com/business/2018/03/22/1799029/panda-bond-issue-opens-china-market-philippines-firms#Ka1SxIdQTMJjX7Of.99MANILA, Philippines — The country’s first Panda bond issuance has opened the doors for private companies to tap the Chinese market, British banking giant Standard Chartered Bank said.
Stanchart CEO Lynette Ortiz said the landmark transaction, which raised 1.46 billion renminbi or nearly P12 billion for the government, “established the Philippines as a high profile and sophisticated issuer with access to multiple funding sources.”
“The government’s successful issue now opens the door for the private sector to access the onshore Chinese bond market for financing,” Ortiz said.
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The Philippines’ maiden issue of Panda bonds affirms the country’s improving bilateral relations with China and the increasing relevance of the renminbi.
In 2016, the International Monetary Fund (IMF) included the renminbi in the special drawing rights’ (SDR) basket of currencies.
Chinese and other offshore investors swarmed the renminbi-denominated bond offering of the Philippine government with oversubscription hitting about 6.32 times, the all-time largest coverage for any panda sovereign issuer.
Bids reached 9.22 billion renminbi compared with the Philippine government’s debt offering of 1.46 billion renminbi.
The Philippines emerged as the first ASEAN sovereign to issue Panda bonds, and was able to diversify its investor base with participation originating from both onshore and offshore investors.
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