THE GOVERNMENT is lining up three offshore bond offers this year, the Finance chief said yesterday.

First up will be a sale of dollar-denominated “global bonds” which Finance Secretary Carlos G. Dominguez III said in a press briefing in Malacañang “will happen between now and February.” The Finance chief said it would be worth “more or less the same amount as last year.” In January 2017, the government auctioned off $2 billion worth of 25-year bonds, raising $500 million in new money and swapping some $1.5 billion. Mr. Dominguez had said last December that the government may issue $1 billion this year in a combination of both new money and swap agreements.

He said that the government is also preparing a yuan-denominated debt sale. “Panda bonds — pending approval by the monetary authority in China — the panda bonds we are studying the issuance sometime this year,” said Mr. Dominguez, adding that the offer would involve “roughly $215 million equivalent in renminbi.” Initially scheduled for around October or November last year, the Finance chief had said in November that the government was looking at an offer in 2018’s first quarter.

Mr. Dominguez also said that the sale of “samurai bonds” or yen-denominated debt papers is “being considered sometime towards the end of this year.” However, he said the government was “not sure yet” of the amount to be sold. — Elijah J. C. Tubayan

One bond trader said the offshore bonds should see strong demand, after Fitch Ratings, for the first time since 2013, last month upgraded the Philippines’ credit rating from “BBB-” to “BBB” — a notch above minimum investment grade matching ratings earlier given by Moody’s Investors Service and S&P Global Ratings — with a stable outlook, citing favorable macroeconomic conditions and the enactment of a major tax overhaul.

“I think the demand will be robust… global markets will look for investment grade that at the same time gives a yield higher than the Treasury,” the trader said over the phone.

“No problem with China bonds because the issue will just be a small amount. The market will also be abroad rather than here. So prospects will be good on the yuan,” the trader added.

“It’s more like the yuan will go ahead of the yen(-denominated debt sale). But Philippines is investment grade and the yield will be better… no problem with the demand for the yuan and the samurai (bond sale) as well.” — Elijah Joseph C. Tubayan

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