JBIC willing to guarantee new Phl Samurai bond float

MANILA, Philippines -  The Japan Bank for International Cooperation (JBIC) is open to providing guarantee to another Samurai bond sale of the Philippine government, Finance Secretary Cesar Purisima said over the weekend.

The Finance chief said he met with JBIC officials last week for possibly another batch of yen-denominated bonds.

The government, he said, is looking at issuing 15 to 20 year bonds or longer than 10-year bonds which the Philippines issued last year.

“They’re (JBIC) very receptive. They’re open to it and they’re considering it seriously,” Purisima said.

Japanese investors are asking the Philippine government to issue yen-denominated bonds again. Members of the Philippine economic team met with the Japanese business community in Tokyo two weeks ago where the possible issuance of Samurai bonds was discussed.

Aside from yen-denominated bonds, Purisima said the Aquino administration is actively studying all its fund raising options including the issuance of peso-denominated global bonds.

The government still needs to raise $1 billion from the foreign debt market this year.

Last year, the government of then President Arroyo raised ¥100 billion or $1.1 billion from the sale of Samurai bonds to plug its widening budget deficit.

The 10-year Samurai notes fetched a coupon rate of 2.32 percent and is 95 percent guaranteed by JBIC.

Last year’s Samurai bond issue was the government’s first yen-denominated bond sale in nine years.

Prior to this, the Philippines tapped the Japanese Capital Market in 2001 with the issuance of Shibosai bonds, also a form of Samurai bonds, amounting to Japanese ¥50 billion.

Government officials were in Tokyo two weeks ago for the 29th Joint Committee Meeting of the Philippine Japan Economic Cooperation Committee Inc. (PhilJec).

Aside from Purisima, the officials present during the meeting included Trade Secretary Gregory Domingo, Energy Secretary Rene Almendras and Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo.

They met with very senior members and decision makers of the Japanese investment and business communities and encouraged them to take part in the positive growth momentum of the Philippines.