Gov’t may sell dollar bonds to migrant Filipinos in May

THE PHILIPPINE GOVERNMENT may launch next month a retail dollar bond offering that targets Filipino workers overseas, according to the national treasurer.

The decision to sell the bonds would be subject to market conditions, National Treasurer Rosalia V. de Leon told reporters on the sidelines of an economic briefing in Washington, D.C. on Wednesday evening Manila time.

“We’re looking to have our second tranche of the retail dollar bonds,” she said. “We look forward to a very successful launch again this time around.”

Ms. De Leon said the diaspora of overseas Filipinos would find it easier to buy the retail bonds because they could do so through partner apps.

The government might sell USD 1.5 billion worth of 5.5-year debt. “These are indicative terms and USD 1.5 billion was the size of the last retail dollar bond so it is just a benchmark,” she said in a Viber message after the event.

The Philippines’ last retail dollar bond sale was in 2021, when it raised USD 1.6 billion.

Last month, Finance Secretary Benjamin E. Diokno said the government was targeting to raise USD 2 billion to USD 3 billion from the retail dollar bond sale. Proceeds of the bond offer will be used to finance the national budget.

Ms. De Leon said they have no further plans so far to issue more global dollar bonds this year. But government economic managers would hold a roadshow trip to the Middle East.

Mr. Diokno earlier said that the government was eyeing other global bond offerings.

In January, the government raised USD 3 billion from its second global bond offering under the government of President Ferdinand R. Marcos, Jr.

The state borrows from external and local sources to fund a budget deficit capped at 6.1% of the gross domestic product for 2023.

The government plans to borrow PHP 2.207 trillion this year, 75% locally. The government plans to borrow PHP 1.654 trillion domestically and PHP 553.5 billion overseas. — By Keisha B. Ta-asan