Japanese investors remain interested in RP's Samurai bonds
11/02/2009 | 02:37 PM
Government-issued bonds to be sold in Japan are expected to be in demand after Japanese investors remain on the lookout for opportunities.
This was disclosed by Sumio Ishikawa, the Japan Bank for International Cooperation’s chief representative to the Philippines.
Since the second-largest economy remains “in bad shape," Japanese investors “are in search for opportunities to earn," Ishikawa told reporters.
“Investors are interested in Samurai bonds to be issued by the Philippines," he added, referring to the Philippines’ planned Samurai bond offering.
Proceeds from the sale of Samurai bonds – yen-denominated debt papers issued in Tokyo by a non-Japanese entity – will be used by the government to, among others, narrow the deficit.
Earlier, Finance Secretary Margarito B. Teves said that the planned issuance may be postponed if Manila and the JBIC – which will guarantee the offering – fail to agree on the guarantee fees.
In 2001, the Philippines tapped the Japanese capital market by selling Shibosai bonds – also a form of Samurai bonds – worth ¥50 billion.
JBIC agreed to guarantee 95 percent of the current value of principal and interest payments.
Finance Secretary Margarito Teves earlier said the Philippines may postpone the issuance of Samurai bonds to early 2010 if the government and JBIC fail to agree on the price of the guarantee fees.
The Philippines is already expected to breach its spending limits for the year after it allowed companies to enjoy tax cuts and failed to meet tax collection goals.
The Philippines expects to spend P250 billion more than what it earns this year.
But that limit may be reached even before the year ends.
From January to September, the budget deficit has already grown to P237.5 billion, 345 percent than the shortfall reported last year. - GMANews.TV
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This was disclosed by Sumio Ishikawa, the Japan Bank for International Cooperation’s chief representative to the Philippines.
Since the second-largest economy remains “in bad shape," Japanese investors “are in search for opportunities to earn," Ishikawa told reporters.
“Investors are interested in Samurai bonds to be issued by the Philippines," he added, referring to the Philippines’ planned Samurai bond offering.
Proceeds from the sale of Samurai bonds – yen-denominated debt papers issued in Tokyo by a non-Japanese entity – will be used by the government to, among others, narrow the deficit.
Earlier, Finance Secretary Margarito B. Teves said that the planned issuance may be postponed if Manila and the JBIC – which will guarantee the offering – fail to agree on the guarantee fees.
In 2001, the Philippines tapped the Japanese capital market by selling Shibosai bonds – also a form of Samurai bonds – worth ¥50 billion.
JBIC agreed to guarantee 95 percent of the current value of principal and interest payments.
Finance Secretary Margarito Teves earlier said the Philippines may postpone the issuance of Samurai bonds to early 2010 if the government and JBIC fail to agree on the price of the guarantee fees.
The Philippines is already expected to breach its spending limits for the year after it allowed companies to enjoy tax cuts and failed to meet tax collection goals.
The Philippines expects to spend P250 billion more than what it earns this year.
But that limit may be reached even before the year ends.
From January to September, the budget deficit has already grown to P237.5 billion, 345 percent than the shortfall reported last year. - GMANews.TV
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