Philippines to tap global debt market anew – Finance chief

The Philippines intends to tap the global debt market anew after it successfully raised funds last month to reduced its foreign currency loans and take advantage of investor confidence country. “We are considering another GPN this year,” Finance Secretary Cesar Purisima said Wednesday, revealing plans to Government is planning to issue global peso notes (GPN) to reduce its foreign currency-denominated debt.    GPNs are peso denominated debt issued in the global market,   The timing and volume will depend on market conditions, according to the Finance chief, saying the Aquino administration may float at least $500 million in new peso notes.   The Philippines issued its first global peso bonds in September 2010, the first Asian country to sell local currency debt in the global market. It sold $1 billion in 10-year global peso bonds in September 2010 and $1.25 billion in January 2011.   According to the Finance chief, reducing the foreign-currency component of Philippine sovereign debt carries a built-in protection against foreign exchange fluctuations.   Last month, the Philippines borrowed $1.5 billion from the foreign debt market by floating dollar-denominated bonds maturing in 2037. Total offers for the 2037 bonds reached $12.5 billion.   Finance Department data showed that Philippines intends to borrow $4.02 billion from external sources this year from $4.5 billion last year.   About $2.23 billion to $2.5 billion will be sourced from commercial lenders and $1.77 billion will come from program and project loans.   Purisima, who recently talked to investors during a no-deal roadshow in Europe last week, said there is a strong likelihood that investors will swamp another Philippine debt sale.   He noted that investors believe in the Aquino administration’s platform of good governance. — VS, GMA News