The Republic of the Philippines is looking at the Panda and Samurai bond markets to diversify its funding sources, Treasurer Rosalia De Leon has told IFR in an interview. The country is planning to raise $200 million-equivalent from a maiden issue of Panda bonds with maturities in a range of three to five years.
"The Panda bond issuance is part of our diversification strategy," De Leon said. "If the pricing is competitive and within the range of the dollar market, we will consider Samurai bonds as well," she said on the sidelines of a Nomura conference in Singapore. Panda bonds are renminbi-denominated notes sold in China by foreign issuers, while Samurai bonds are yen-denominated bonds issued by non-Japanese entities in Tokyo.
Panda bonds will complement the Philippines' financing requirements for building bridges, roads and railways, De Leon said. "Since it is going to be initial issuance, we are just raising a token amount to open the market," she said. "The private sector would also want to tap into the renminbi onshore market."
"Right now we are talking to the People's Bank of China and going through the approval processes in China and internally. We are having some discussions with potential underwriters and are also watching the developments in the Chinese onshore market," she said. "If the market is favourable, we will issue Panda bonds within a year," De Leon said, depending on approvals and market conditions.