ASEAN KEY DESTINATIONS
Philippines to sell bonds abroad
The government has set a commercial borrowing program of $2.5 billion next year, or the same as this year.
The Aquino administration issued the country's first global peso bonds worth $1 billion and swapped about $3.19 billion of existing debt maturing over the next few years for newer but longer-tenor IOUs.
Both undertakings were done in September.
Tan said the government would forego euro bonds amid the euro zone's debt crisis.
"Yen is more attractive so we would likely continue issuing Samurai bonds next year," he said.
The Philippines issued the equivalent of $1.1 billion worth of yen-denominated debt in the Japanese market last February.
The government has a total of $22.47 billion worth of dollar debt maturing between 2011 and 2034, of which $2.5 billion would fall due in 2019, the most in any single year.
For next year, local currency debt would account for about 73 percent of the government's total borrowing program, while the balance would be a mix of foreign currencies such as the US dollar and Japanese yen.
The Bureau of the Treasury has set the minimum coupon rates for the new 10-and 25-year benchmark debt notes that are on offer starting yesterday up to December 10 through a bond swap.
The Treasury announced that the minimum coupon rate for the new 2020 bond is at 5.875 percent, and for the new 2035 bonds at 8.125 percent.
Roberto Juanchito Dispo, executive vice president of First Metro Investment Corp., told reporters last Wednesday that this year's debt swap would likely exceed last year's P144.5 billion amid strong investor appetite echoed by sound macroeconomic fundamentals.
He said that outstanding bonds amount to P1.9 trillion, adding that investors may offer to swap between P150 billion and P190 billion of their existing bonds
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