Government plans to raise up to P40 billion from Marawi bond sale

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This March 28 photo shows an aerial shot of a destroyed mosque in Marawi City, in southern island of Mindanao, after five months of house-to-house fighting between troops and jihadists loyal to the Islamic State group that killed nearly 1,200. -- AFP

THE DEPARTMENT of Finance (DoF) is eyeing to float about P40 billion worth of bonds for the five-year rehabilitation of Marawi city.

Finance Secretary Carlos G. Dominguez III said that the overall cost of rehabilitating Marawi city would reach P62 billion.

He said that the bond offer “depends on the market at that time so roughly P10 billion a year, probably we will end up raising maybe P40 billion of the P62 billion.”

“This is over five years. This is not immediate so it’s over five years and there is a progression— the total is P62 billion. So we will have to do now our financial planning,” Mr. Dominguez said.

“We will issue it definitely in tranches because we should not borrow more than what we need for that year… We already have P10 billion already budgeted so we will go and get more details on how much is actually required and at what dates,” Mr. Dominguez said.

He added that the balance will come in the form of grants from local and foreign sources. — Elijah Joseph C. Tubayan