MANILA – Part of the proceeds of the Philippine government’s planned USD500-700 million Samurai bond issuance this 2018 will be used to finance the rehabilitation of the state-owned asset in Nanpeidai, Shibuya in Japan.
Finance Secretary Carlos Dominguez III said funding the reconstruction of the government’s around 2,500-square meter property in Shibuya is really one of the factors for the planned yen-denominated securities issuance.
“It’s more like a commercial deal so there is partial payback from your savings and from the fact that we can rent it out as chancery,” he told reporters Tuesday.
Earlier, the Finance chief discounted the sale of the property, citing a proposal to just rent it out to Philippine embassy employees in that country.
Aside from using the property as housing site for embassy staffers, a social hall is also being considered to be constructed in the site.
National Treasurer Rosalia De Leon said they have not determined how much would be used for the property’s rehabilitation but said she expects to have the value before the end of the year.
“That amount would still have to be calculated based on the development plan,” she said.
Part of the proceeds of the planned Samurai bond issuance would also be used to pay existing yen-denominated debt, which would mature in 2020, she said.
The country usually issues Samurai bond with a tenor of 10 years, she added.