THE Philippine government is eyeing the issuance of global bonds in the first half of the year.
Finance Secretary Ralph Recto, in an interview with Bloomberg at the sidelines of the World Economic Forum in Davos on January 20, said the government is aiming to raise $3.5 billion.
“We’re only looking at tapping something like 3.5 billion dollars this year. Mostly dollar. There will be Euros I suppose, but mostly dollar. Like I said, it’s only roughly about 3.5 billion dollars,” Recto said.
He said they are in talks with eight banks to help with the foreign bond sale.
“The [Bureau of the] Treasury is working with them. And we’re listening to their opinions on the timing of these bond issuances,” he said.
The Finance chief earlier said the government will limit foreign borrowings to minimize exposure to foreign exchange risk.
The government plans to focus more on domestic borrowing, with a financing mix of 80 percent domestic and 20 percent foreign this year.
Gross borrowings are expected to reach P2.55 trillion this year.
“Most of, 80 percent of our borrowing is domestic. There’s a lot of domestic savings in the Philippines. There’s a lot of liquidity. It’s even cheaper for us to borrow domestically, frankly speaking. So we’re not so much concerned,” Recto said.
Recto, meanwhile, said the Philippines is unlikely to be directly hit by the possible imposition of higher US tariffs.
“A Trump presidency, there is uncertainty on what he plans to do with regard to tariffs and inflation. Of course, if tariffs are imposed and inflation goes up, then interest rates may not go down as much as we want it to, right? So that will affect global growth, I suppose,” he said.
He added: “But frankly speaking, it would appear that President Trump is a practical person. He probably would increase tariffs on countries which has immigration issues I suppose, or maybe with countries with high trade deficits. So the Philippines is not in that position.” (PNA)
