PHL one step closer to issuing Samurai bonds

The Philippines is now one step closer to issuing yen-denominated bonds and is securing the necessary requirements from Japanese regulators, the Bureau of the Treasury (BTr) said Wednesday.

“In terms of the timetable, we’re now starting with our due diligence for an SRS filing with the Japanese regulators,” National Treasurer Rosalia De Leon told reporters in a press conference in Makati City.

SRS or Securities Registration Statement is a regulatory requirement in selling bonds in Japan.

Budget Secretary Benjamin Diokno earlier said the government is exploring Samurai bonds to diversify sources of financing for the infrastructure spending program.

Under the Build, Build, Build program, the government plans to spend over P8 trillion until 2022, largely funded by tax revenue.

“We always say the issue, the sale would depend on market conditions in the Japanese market. In terms of the amount, also depending on the market,” De Leon said.

De Leon noted that the Philippines has tapped five Japanese banks for the planned issuance—Mizuho Bank Ltd., the Daiwa Securities Group, Nomura Holdings Inc., Sumitomo Mitsui Banking Corp., SMBC Nikko Securities Inc., and MUFG Bank Ltd.

Regarding the planned Marawi bonds, De Leon said the details are still being finalized.

“You have to know, you have to be able to communicate which specific projects, how to help the Marawi rebuilding,” she said. —VDS, GMA News