Manila to sell $1b in bonds

MANILA (Bloomberg): The Philippines plans to sell US$1 billion in bonds in the U.S. and Japan in January, betting Japanese guarantees will reduce borrowing costs, Finance Secretary Edgardo Espiritu said.

Espiritu said the government will raise $500 million from the sale of a Samurai bond and an additional $500 million from a global bond sale.

A successful international bond sale by the government could open the door for corporations to gain renewed access to global capital markets, quickening an economic recovery.

Espiritu said a $30 billion Japanese aid package for battered Asian economies -- unveiled last month by Finance Minister Kiichi Miyazawa -- could be tapped to provide borrowing guarantees. Japan's debt is rated "AAA", the best grade from Standard & Poor's.