MANILA – The Philippine government is awaiting approvals from Chinese authorities of the former’s planned maiden Panda bond issuance.
National Treasurer Rosalia de Leon told reporters Monday that the government is “on track” in getting the approvals but declined to disclose when they really want to tap the Chinese capital market.
“I think they’re still reviewing because, if ever, it would be the first time to issue as well,” she said.
Panda bond is a renminbi-denominated debt paper issued by a non-Chinese issuer in China.
Finance Secretary Carlos Dominguez III earlier said Philippine finance officials are now in talks with a Chinese financial institution for a possible Panda bond issuance in the second half of 2017.
De Leon said the amount they will issue “would still depend on the appetite and the market conditions in the onshore RMB (renminbi) market.”
“We’ve not really set a minimum,” she said, noting that possible tenors would be three to five years.
De Leon said Panda bond issuance was one way for the government to diversity its investments.
“Also, eventually, we see the Panda or RMB market would be the third largest debt market after the Samurai and the US. I think we also have to have a footprint in the Panda market,” she added.
Samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese issuer.