TOP JAPANESE BANKS have expressed their interest in participating in the Philippines’ return to the yen debt market following their meeting with the Finance department in Tokyo.
In a statement sent to journalists yesterday, the Department of Finance (DoF) said that Finance Secretary Carlos G. Dominguez III met with officials of Daiwa Securities Group Inc., Mitsubishi UFJ Financial Group (MUFG), Nomura Holdings Inc., Mizuho Financial Group, and Sumitomo Mitsui Banking Corp. (SMBC), where all have expressed interest of the upcoming bond issuance.
“We can expect a strong demand. And of course, now the investors are looking for places to invest. Now for samurai bonds, there will be strong demand,” Daiwa President and Chief Executive Officer Seiji Nakata was quoted by the DoF as saying.
“We are right behind you, so no need to worry,” he added.
MUFG Deputy Chairman Saburo Araki meanwhile said: “We are extremely supportive of the bond issue…We are very excited and pleased for the inauguration or possible issuance.”
He added that Japanese investors have “strong confidence in the Philippines now and into the future,” citing the “good relationship” between both country’s leaders.
The government eyes to offer about $1 billion worth of yen-denominated securities by September or October. It has already started to secure necessary approvals from regulators here and in Japan, and has already conducted an economic briefing on Tuesday led by the country’s economic managers, the central bank Governor, and other Cabinet officials.
According to the DoF, the upcoming samurai bond float will be the ninth offered by the Philippines, but will be the first without any guarantee from a Japanese institution.
The previous sale of yen-denominated notes was in 2010 when the government raised 100 billion yen in 10-year papers through private placement, fetching a 2.32 percent coupon.
The Japan Bank for International Cooperation guaranteed 95 percent of the issuance through its Market Access Support Facility — which was established to assist Asia’s developing countries in accessing international capital markets following the global financial crisis of 2008.
No guarantee fees would mean lower financial costs for the Philippine government, the DoF said. — Elijah Joseph C. Tubayan

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