PH to register Panda bonds with China’s investors’ group soon

MANILA  – – The Philippine government will  “soon” register its planned Panda bond  with China’s National Association of Financial  Market Institutional Investors (NAFMII).
Deputy Treasurer Erwin Sta. Ana told reporters Tuesday that registration with the NAFMII is a requirement for anyone who wants to tap China’s capital market and offer the debt paper in mainland China.

Next step is to get another approval from the People’s Bank of China (PBOC), he said.

“Then we’ll take it from there. Once we get that approval, we’ll do some roadshows and possibly do some market sounding as well if it’s okay for us to go,” he said.

Panda bond is a renminbi-denominated debt paper issued by a non-Chinese issuer in China.

Sta. Ana said Philippine finance officials continued to see an issuance with tenor of between three and five years and at a minimum of USD200 million.

He said the government is open to upsize “depending on market appetite and market sounding.”

“But essentially we’re looking at USD200 million,” he said.

The government is also considering to issue in the last quarter of the year the proposed Marawi bonds, proceeds of which will be used for the rehabilitation of Marawi City which continues to suffer from the fighting between the military and members of the terrorist Maute Group.

Sta. Ana said the Finance department is just awaiting the report from the Department of National Defense (DND) with regards to the cost of damages and the city’s rehabilitation requirement.

“We’re looking (to issue around) fourth quarter. We can do something on that one but it really depends on the DND,” he said