Return to euro bond market possible this month — BTr

MANILA, Philippines — The Bureau of the Treasury (BTr) yesterday hinted at the possibility of returning to the euro bond market within the month, as investors showed positive response for the upcoming issuance.

During the weekly economic briefing at Malacañang yesterday, National Treasurer Rosalia de Leon said the Philippines may launch its euro bond issuance “very soon” following the conclusion of the investor roadshow in key European cities last week.

Asked to clarify whether the fund raising activity would be next month, De Leon said, “that’s too long,” hinting that the issuance would likely be launched within the month.

Last week, officials met with investors in Zurich, London, Paris, Frankfurt and Milan to brief investors and to gauge market demand for the Philippine-issued bonds.

According to De Leon, the proposed bond offering has been widely anticipated by the euro onshore market given the positive investor confidence in the country.

“We have received overwhelming interest from the European investors, as well as investors from others, like Asia and the US. We are just watching closely market developments and very soon we may be able to launch the euro bond issuance,” De Leon said.

De Leon said European investors have been looking forward to the Philippines’ return to the euro bond market. The country’s last issuance of euro bond was in 2006.

“They have been following the Philippine narrative very closely. They are aware about the tremendous strives we’ve had in terms of the reforms that we’ve done so they see that it’s about time that the Philippines will go back to the market,” De Leon said.

According to De Leon, the foray into the European market is part of the administration’s efforts to diversify its funding sources to bankroll priority programs, especially the Build Build Build program.

De Leon earlier said the bonds may have a tenor ranging from seven to 10 years, and a benchmark volume of $500 million.

Meanwhile, the Treasury chief added that the Philippines has already secured all the necessary approvals for its planned panda bond issuance, and is just watching closely for market developments before it is launched.

“For the panda, we have already received the approvals of the regulators. We’re looking closely at the RMB onshore market and if we see favorable pricing, then definitely we will pull the trigger as well,” she said.