RP weighs US$500m bond issue

RP weighs US$500m bond issue

MANILA (Reuters): The Philippines, spurred by solid demand for emerging market bonds, may turn to offshore markets as early as this month to fund its growing budget deficit, Finance Secretary Jose Camacho said on Thursday.

He told Reuters the issue would probably be 10-year sovereigns worth at least US$500 million, but its timing and place would depend on input from investment banks.

"The roadshow is scheduled for the end of July," Camacho said, referring to the government's investment campaign.

The Philippines has kept to its initial budget deficit target of 145 billion pesos ($2.74 billion), despite a recent downward revision of its target for growth in gross domestic product (GDP) to 3.3 to 3.8 percent this year from 3.8 to 4.3 percent earlier, Many analysts doubt the goal is achievable, but Camacho said the target was valid though under constant review.