ASEAN KEY DESTINATIONS
Strong demand seen for Philippine Samurai bonds —DOF
Japanese banks expect the Philippine issuance of Samurai bonds to attract a strong demand, the Department of Finance (DOF) claimed Wednesday.
Citing initial feedback from Japan-based lenders, the DOF said there is strong demand for the $1 billion worth of yen-denominated bonds.
Among the banks tapped for the planned issuance are Mizuho Bank Ltd., Daiwa Securities Group, Nomura Holdings Inc., Sumitomo Mitsui Banking Corp., SMBC Nikko Securities Inc., and MUFG Bank Ltd.
“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 CEO Seiji Nakata was quoted as saying in the DOF statement.
“Not only the government, but also the private sector wants to invest in your country. By collaborating government and private sector partnership we can do a lot,” Nomura president Koji Nagai said.
“We are extremely supportive of the bond issue ... We are very excited and pleased for the inauguration or possible issuance,” said MUFG president and CEO Saburo Araki.
In March, Budget Secretary Benjamin Diokno said the possible issuance would diversify sources of financing for the government’s massive infrastructure spending program.
“We are now confident that our infrastructure program has enough capital for it. We are not going to be relying solely on debt to finance it,” Finance Secretary Carlos Dominguez III said.
Under the Build, Build, Build program, the government plans to spend over P8 trillion until 2022, largely funded by tax revenue.
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