By Rosemarie Francisco
MANILA, March 9 - The Philippines is talking with banks on additional foreign debt issues this year, including a dollar-denominated bond sale, to complete its 2011 foreign financing programme, a senior official said on Wednesday.
Manila, which in recent years has gone to the foreign debt markets early to secure most of its financing needs, raised $1.25 billion from an offer of global peso bonds in January, half of its 2011 foreign funding requirement.
"We are continuing discussions with banks on funding opportunities, including a dollar issuance," Rosalia de Leon, head of the Finance department's international finance group told Reuters. "Nothing formal yet."
A senior official of a foreign bank that has managed previous debt issues declined to comment when asked by Reuters if the government had issued a request for proposals for a dollar-denominated bond sale.
Last week, Finance Secretary Cesar Purisima said Manila was considering a third local currency global bond and a dollar bond sale, and could also launch a Samurai bond issue as early as April to fill its 2011 financing needs. [ID:nSGE72204B]
The Philippines was the first Asian sovereign issuer of local currency global bonds, going to the market in September last year and again in January to sell global peso bonds.
It also is planning to be the first Asian sovereign to issue a Samurai bond longer than 10 years, as it seeks to extend its debt maturities and better manage its debt load.
Purisima has said the government was keen to issue a 15- or 20-year Samurai bond.
De Leon said Manila was in discussions with the Japan Bank for International Cooperation on guarantee terms for a possible 15-year Samurai debt sale.
Last year, the JBIC extended a 95 percent guarantee for the Philippines' 10-year, 2.32 percent Samurai bonds worth $1.1 billion sold via private placement, its first debt issue in the Japanese market for nine years. [ID:nSGE61M012]
Manila relies heavily on local and foreign borrowing to offset weak revenue and fund its budget deficit. The deficit is expected to narrow to 290 billion pesos, or 3.2 percent of GDP, this year from 314 billion pesos, or 3.7 percent of GDP in 2010.
It plans total borrowings of around 773 billion pesos this year, of which 27 percent will come from foreign sources, including official development assistance and bond issues.
