Philippines in talks with banks on green bond issue

MANILA, Feb 17 (Reuters) – Philippine Finance Secretary Carlos Dominguez said on Thursday the government was in talks with various banks on the appropriate structure for its planned maiden green bond offering.

The discussions include the size and tenure of the bonds, and the government was also “looking at a window of opportunity in different currency markets,” he told reporters.

The Philippines – one of Asia’s most active issuers of sovereign bonds – in November announced its plan to issue green bonds in line with its effort to mobilize funds for capital-intensive climate adaptation and mitigation projects.

Dominguez did not give any specific timing for the green bond issue nor identify the banks involved in the talks.

On Wednesday, fixed income news provider IFR reported the Philippines had mandated Bank of China 601988.SS, Citigroup, Credit Suisse (CSGN), Deutsche Bank (DBKGn), Goldman Sachs (GS), Mizuho Bank, Morgan Stanley (MS), Standard Chartered (STAN) and UBS (UBSG) for a potential US dollar bond offering in the ESG format.

Citing a source aware of the development, IFR said the Philippines was looking to raise USD 1 billion to USD 2 billion from medium to long-term bonds.

The Philippines is yet to make an official announcement on the mandate.

A Reuters source with knowledge of Philippine plan, however, said the Philippines’ first sovereign green bond offer may not just involve a dollar-denominated issue, but declined to elaborate.

(Reporting by Enrico Dela Cruz; Editing by Kanupriya Kapoor, Martin Petty)