The government moved the planned Panda bond issuance worth $200 million in China to the first quarter of 2018 from the initial schedule of fourth quarter this year pending the approval from the People’s Bank of China, Finance Secretary Carlos Dominguez III said Wednesday.
“The Bureau of the Treasury is awaiting final approval from the People’s Bank of China so the schedule for issuance has been moved to first quarter,” Dominguez said in a statement.
“Similar to other fund-raising activities, Panda bond offering is subject to favorable market conditions in the onshore RMB [renminbi] market and provides competitive pricing compared to other funding options,” he said.
The Philippines sent a delegation that conducted a non-deal roadshow in China in the third quarter where they met about 13 potential investors for the Panda bonds, a combination of banks and asset management corporations.
National Treasurer Rosalia de Leon said Chinese investors expressed interest in the planned issuance. “They are very enthusiastic about the growth narrative of the Philippines…. [They are] anticipating that eventually the Philippines would make its first footprint in the Panda market,” she said.