MANILA, Feb 26 - The Philippines is looking at issuing its first ever sukuk, or Islamic bonds, worth around $500 milion, said a banker familiar with the transaction, as the government seeks to diversify its debt profile.
The issue could be done through state enterprises like the National Power Corp, which is raising 15 billion pesos ($325 million) for its Small Power Utilities Group project, said Roberto Juanchito Dispo, executive vice president at First Metro Investment Corp .
FMIC is arranging the bond issue, possibly in partnership with CIMB Group of Malaysia. The offer may have maturities of five to 10 years.
"Before the global financial crisis, we we're considering $1 billion potentially. But given the crisis, we're now looking at $500 million," he told Reuters.
Global sukuk issuance totalled $19 billion last year. Indonesia is eyeing a global sukuk issue early in the second half this year.
FMIC hopes to submit a proposal on the sukuk, or financial instruments that comply with Islamic investment principles which prohibit interest payments, to the government in the second half, Dispo said.
First Metro is currently handling the Philippines' $500 million retail bonds to be sold to overseas Filipino workers. the issue will be launched in April. For more Reuters Islamic finance stories by Reuters
