Philippines pitches Panda bonds

MANILA, Philippines — Luring potential investors to buy the country’s maiden Panda bond offering is high on the Philippine economic team’s agenda in an ongoing China roadshow, the Department of Finance (DOF) said.

In a statement, the DOF said the delegation led by Finance Secretary Carlos Dominguez III is spearheading a “non-deal roadshow” in China to entice potential buyers of the Panda bonds, tentatively scheduled to be offered in the last quarter of the year “depending on market conditions.”

The non-deal roadshow is also seen as an opportunity to inform potential investors of the rosy outlook of the Philippine economy under the Duterte administration’s massive Build Build Build program, the agency said.

Dominguez earlier said the government may raise around $200 million from the issuance of Panda bonds or yuan-denominated securities in the second half of the year, taking advantage of the Philippines’ renewed and strengthening ties with China.

Dominguez and other members of the economic team will be in China from Sept. 27 to 29 to pitch not only the government’s planned renminbi-denominated Panda bond offering before potential investors but also trumpet the country’s so-called golden age of infrastructure.

The economic team will also meet with high-ranking Chinese officials to discuss the progress of the preparations for the  Philippines’ big-ticket infrastructure projects that would be partly funded by official development assistance from China.  

Dominguez said the Build Build Build program would be funded by a combination of resources from the DOF’s proposed comprehensive tax reform program, foreign development aid and commercial loans.