The government plans to issue $200 million worth of the so-called “Panda bonds” in China before the end of the year, Finance Secretary Carlos Dominguez III said Tuesday.
Dominguez, speaking at the sidelines of Dutertenomics Forum at Conrad Hotel in Pasay City, said the issuance aimed to “raise additional funds” for the government’s projects.
A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer sold in the People’s Republic of China. The first two Panda bonds were issued in October 2005 by the International Finance Corp. and the Asian Development Bank.
Dominguez said earlier this year the lineup of major infrastructure projects under the Duterte administration would require the government to explore “hybrid” financing arrangements.
He said the proposed hybrid financing arrangements would combine development aids and loans to raise more funds for future projects.
The Philippines previously entered into similar financing arrangements for other infrastructure developments. These projects include Laguindingan Airport in Misamis Oriental, which was built through a combination of loans from the Korea Economic Development Cooperation Fund and an export loan from Korea Eximbank.
The government eyes hybrid financing arrangements for both the Edsa Bus Rapid Transit and the Metro Manila flood control project.
The Finance Department also plans to raise additional funds for its infrastructure program through the Comprehensive Tax Reform Program.
Dominguez said the government expected to raise P206.8 billion from tax reforms in the first full year of implementation.
The tax reform program aims to cut personal income tax while enforcing other revenue measures to supplement the lower personal tax rates.