THE PHILIPPINES saw healthy investor interest in its public-private partnership (PPP) program during the roadshow it held in Australia last week, a Cabinet official said.
“A lot of companies are interested, especially those with investment funds that specialize in infrastructure. A number of big names have expressed interest in our PPP projects,” Finance Secretary Cesar V. Purisima said at the sidelines of a Senate hearing yesterday. He declined to name the firms.
Australia has a “deep experience” in PPP, he explained, citing big-ticket deals like the management of the Sydney Airport and the conservation of natural parks.
A team of economic managers visited Australia from Sept. 10-17, led by Mr. Purisima. Also in the delegation were National Treasurer Roberto B. Tan, Bangko Sentral ng Pilipinas Assistant Governor Cyd N. Tuano-Amador and Investor Relations Office Executive Director Claro P. Fernandez.
Despite the success of the roadshow, the Finance chief nixed reports that the Philippines is considering a foreign bond issuance denominated in Australian dollars.
“No, there is nothing like that. Adding a third currency will complicate our liability management efforts,” he said.
The government is seeking to manage its debt portfolio by reducing the foreign-currency component — primarily denominated in US dollars — in order to avoid any vulnerability in the international markets.
Of the gross borrowings for 2012 and 2013, 75% will be sourced locally while only 25% will be raised abroad.
Mr. Purisima kept mum on other planned issuances of the government, amid reports that the central bank has approved proposals to sell up to $1 billion in global peso notes, as well as $500 million in dollar bonds in the local market.
The final offer size, tenor and timing of the borrowing exercises have yet to be finalized.
“We are open to a liability management exercise as long as the opportunity is there,” he said.
“Our goals are always to lengthen maturities, lower borrowing costs, reduce the bunching up of maturities and reduce the foreign currency component. If we achieve those goals, then I am happy,” Mr. Purisima said.
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Source: Diane Claire J. Jiao, BusinessWorld. (20 September 2012)
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