Purisima: Govt hires banks to sell $1.5-B peso bonds

The Aquino administration has hired banks to help sell up to $1.5 billion in peso-denominated global bonds in the global debt market, Finance Secretary Cesar Purisima said Monday. “The government has hired banks to help sell global peso bonds due in as long as 25 years," he told reporters, but did not name the banks. “We cannot disclose yet" the identity of the banks, he said. “Demand for emerging-market investments will continue to be strong. We will continue to reduce foreign-currency debt and continue to lengthen maturity. Any transaction that will bring us closer to that goal, we will do," Purisima said. In a separate interview, National Treasurer Roberto Tan said the global bonds could be issued in the first month of the year as government had done so in the past. Tan also said the plan is to borrow up to $1.5 billion, but the total float would actually depend on the market’s response. “It depends on market demand." The planned peso-denominated global bonds will have maturities of 15 to 25 years. The Aquino administration prefers to borrow from the global bond market to eliminate risks associated with foreign exchange fluctuations. — VS, GMANews.TV