Japanese banks back planned samurai bond

MANILA, Philippines — Finance Secretary Ralph Recto has secured the support of Japanese banks and financial firms in the government’s plan to tap the samurai bond market to boost state coffers for priority programs.

On the sidelines of the Philippine Economic Briefing in Tokyo, Recto and DOF officials met with financial holding firm Nomura, banking giant Sumitomo Mitsui Banking Corp. (SMBC) and its securities firm SMBC Nikko Securities.

Recto said Nomura, SMBC and SMBC Nikko have all expressed eagerness in supporting the country’s issuances of yen-denominated securities, known as samurai bonds.

Last week, the finance chief said the government may consider turning to samurai bonds as an option for its fundraising activities.

Should this push through, this will be the first samurai bond issuance to be undertaken by the Marcos administration.

Nomura, SMBC and SMBC Nikko have previously supported past issuances of both samurai bonds and US dollar bonds.

During the Duterte administration, the Philippines borrowed via the Japanese currency in April 2022 and raised 70.1 billion Japanese yen (P28.55 billion).

This was done via a four-tranche issuance with tenors of five, seven, 10 and 20 years with coupons ranging from 0.76 percent to 1.83 percent.

Meanwhile, Recto also explored opportunities for collaboration in the country’s public-private partnerships (PPPs), urging Nomura to participate in the flagship Build Better More program.

He emphasized that private sector participation is now made easier and faster through the PPP Code.

Recto said Nomura showed interest in supporting the country’s infrastructure projects, renewable energy market and sustainability programs.

SMBC and SMBC Nikko also reaffirmed their commitment to continue investing in the Philippines.

Nomura is a global financial services group that offers solutions in retail, wholesale and asset management.

On the other hand, SMBC is a leading Japanese bank while SMBC Nikko is a top Japanese securities firm that engages in the operation of large-scale comprehensive securities brokerage and trading services.