Manila could launch global, yen bonds as early as January

MANILA, Nov 19 - The Philippines could launch yen and dollar bonds as early as January, but the exact timing and size of the debt issues will depend on market conditions, a senior official said on Thursday.

The government, one of Asia's largest sovereign debt issuers, needs to raise about $2 billion to cover its foreign debt requirements for 2010, when its budget deficit is expected to hit 233.4 billion pesos , below a record shortfall this year.

It sold $1 billion in 25-year global bonds in October, with some proceeds to be used to fund its 2010 debt needs. "Normally, we want to do it as early as we could," Rosalia de Leon, head of the international finance group at the Finance deparment, told Reuters.

"We have always been opportunistic," de Leon said. "We want to do it if there is that window of opportunity and if there is a good price."

The Philippines was the first Asian offshore sovereign debt issuer this year when it sold $1.5 billion in 10-year global bonds just a week into the year. [ID:nMAN390993]

De Leon said the government was preparing documentation for a yen bond sale as it wants to launch the issue immediately after it concludes talks with the Japan Bank for International Cooperation .

JBIC has guaranteed up to $1 billion worth of Manila's yen bonds but the government wants the state-backed lender to lower its guarantee fees to bring down the debt costs.

Manila hopes to conclude the talks with JBIC, which it started in June, as soon as possible.

Last week, Finance Secretary Margarito Teves said in the Dealing Room, a Reuters Messaging chatroom, that the government was looking to sell Samurai bonds in early 2010. [ID:nMNB002509]