DOF: Top Japanese banks see strong demand for Philippine 'samurai' bond float

MANILA, Philippines — The Department of Finance on Wednesday said top Japanese banks expect strong demand for the Philippines’ first stand-alone "samurai" bond float set in the third quarter of this year.

Philippine economic officials flew to Tokyo this week to drum up interest in the planned sale of $1 billion worth of yen-denominated bonds, aimed at helping raise money to finance the government's budget deficit.

In a meeting with Finance Secretary Carlos Dominguez III, top officials of Japan’s five largest banks—the Mitsubishi UFJ Financial Group, Nomura Holdings Inc., Mizuho Bank Ltd., Sumitomo Mitsui Banking Corp. (SMBC) and Daiwa Securities Group Inc.—have given their full backing to the Philippines’ samurai bond sale.

“We are extremely supportive of the bond issue …We are very excited and pleased for the inauguration or possible issuance,” MUFG president and CEO Saburo Araki was quoted as saying by the DOF, adding that there is “strong confidence in the Philippines now and into the future” among Japanese investors.

Meanwhile, Tatsufumi Sakai, the Group CEO of Mizuho, cited the Philippines’ recent investment-level ratings upgrades as plus factors for the samurai bond issuance and the continued interest of Japanese investors in the country. 

“Not only the government, but also the private sector wants to invest in your country…By collaborating government and private sector partnership we can do a lot,” Nagai said. — Ian Nicolas Cigaral