Diokno: $3B estimated to be raised from retail dollar bond for OFWs

The Philippine government is expected to raise about $3 billion from the planned dollar-denominated retail bond offering which would cater to overseas Filipino workers (OFWs), Finance Secretary Benjamin Diokno said Wednesday.

During the Kapihan sa Manila Bay forum, Diokno said the launch of the retail dollar bond offering for OFWs, which was initially planned before the year-end, will be in the “first quarter of next year.”

In October, the Finance chief announced the government will be raising funds from the debt market with a planned retail bond offering targeting OFWs, who can purchase bonds using e-wallets. 

As to the amount to be raised from the planned bond offering, Diokno said, “I think around 10% of annual remittances, which is about $3 billion.”

However, he said the DOF and the Bureau of the Treasury are still finalizing the details of the bond offering as well as its terms.

Nonetheless, he said that OFWs can invest as low as $200.

Early last month, the government raised $2 billion or around P117 billion from the issuance of triple-tranche dollar-denominated bonds including five-year and 10.5-year global bonds, and a 25-year ESG or environmental, social, and governance bond.

This marked the Marco administration’s debut in the offshore debt market. — RSJ, GMA Integrated News