The Philippines may cancel or delay a domestic retail bond issue in favour of cheaper offshore options as the government looks for ways to fund a record budget deficit this year, senior government officials said on Thursday. Philippines government bond yields, which had been rising in anticipation of a big government borrowing programme, fell back on news that Manila's offshore options seemed to be increasing.
The Asian Development Bank said it was favourably considering a request by the Southeast Asian nation for a $500 million loan, while the Japanese government has said it is ready to guarantee a Samurai bond offer of $500 million-$1 billion this year. "We have to review our borrowing strategy for the second semester, and see how these new financing alternatives will impact the local borrowing programme, including RTBs (retail Treasury bonds), if we will defer," Roberto Tan, national treasurer, told.