NDC to lower planned P3-billion float

The National Development Corp. (NDC) will scale down its intended P3-billion bond flotation following government’s policy decision to cut down on contingent liabilities especially from government-owned and controlled corporations (GOCCs).

This was confirmed yesterday by NDC General Manager Arthur Aguilar following Trade and Industry Secretary Peter B. Favila’s instruction that NDC could go ahead with its planned bond flotation but without the added sweetener of a government guarantee.

Aguilar assured, however, that even without a government guarantee, the NDC could still do a domestic bond offering using its assets as collateral.

"We will fully comply with government’s policy," Aguilar said.

Furthermore, Aguilar said, NDC would re-prioritize and even cutback on some of the projects it intends to undertake or fund.

"We will have to go back to the drawing board and look at our balance sheet. We will also have to look at what else we can do," Aguilar said.

For instance, Aguilar cited, NDC is hoping to raise some funds from the planned rebidding of its Manila Gas property in Paco and perhaps even from its 18-hectare property in Las Pinas which is currently being leased by Goodyear Philippines.

The NDC Board, Aguilar said, would still have to decide on how much it would scale down its domestic bond offering which will be underwritten by the Land Bank of the Philippines.

Proceeds of the NDC bond float was being eyed as seed fund for the Philippine Infrastructure Corp. (PIC) which is supposed to jumpstart vital infrastructure projects.

Previous NDC bond offerings also helped financed government small and medium enterprise loan programs.