MANILA – The Philippine government is considering another Samurai bond issue in the first half of 2022, said Finance Secretary Carlos Dominguez III.

“Certainly we’re looking at the samurai market, but fundamentally we rely on our domestic market for 70% or 72% of our bond funding,” he said at the virtual Bloomberg Asean Business Summit on Wednesday.

The last time the government tapped into the Samurai bond market was in March 2021, when it offered 55 billion yen of three-year senior unsecured zero-coupon fixed-rate Samurai bonds. .

The Samurai bond is a yen-denominated debt security issued in Tokyo by non-Japanese entities.

The government is appealing to creditors at home and abroad to help finance its programs for the year.

Over the past year, the Philippine government has been active in the debt market to bolster its funding capacity given the additional demands induced by the pandemic.

Among its issuances last year were the PHP 150 billion ($3 billion) US dollar-denominated two-tranche bond, the €2.1 billion global multi-tranche bond and the Samurai bond of 55 billion yen.

Amid active participation in overseas debt markets, Dominguez said the government continued to rely heavily on domestic creditors to boost funding.

He said the authorities are “developing our local capital markets with the support of monetary policies to reduce the reserve requirements of our banks here.”

“So again, we are looking at both markets, but we are more dependent on our domestic capital market,” he added. (NAP)

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