The Philippines is gearing up to issue its first-ever sukuk bonds by the end of November, aiming to diversify its funding sources for the national budget.
Targeted Funding Amount: Finance Secretary Benjamin Diokno has expressed his goal to raise $1 billion from this inaugural offering.
Investor Focus: The government plans to attract institutional funds from the Middle East, with a minimum investment requirement of $200,000 for sukuk bonds.
Middle East Outreach: The Philippines intends to market the sukuk bonds in the Middle East, possibly launching the issuance in the United Arab Emirates (UAE). In the previous month, Philippine officials conducted a non-deal roadshow in the UAE to engage with potential investors.
Maturity Options: The sukuk bonds may come with maturity options of five years or ten years, offering flexibility to investors.
Funding Strategy: The Philippines, a proactive sovereign debt issuer in Asia, aims to borrow approximately $44 billion from debt markets. Roughly one-quarter of this sum will be sourced from foreign channels to support the government's budget of 5.77 trillion pesos for the upcoming year.
Ongoing Fundraising: In addition to the sukuk issuance plans, the Philippines is currently in the process of raising funds through onshore offerings of U.S. dollar-denominated retail bonds, with the offer set to conclude on October 6.
Domestic Borrowing Flexibility: Finance Secretary Diokno highlights the government's flexibility for domestic borrowing options.