PH plans P108-B local debt sales in 3rd quarter

Posted at 06/29/12 10:54 AM

MANILA - The Philippine government will borrow P108 billion ($2.6 billion) from the domestic market in the third quarter, almost flat against its second quarter debt programme, the Treasury said, but it raised the portion for longer-dated paper in the plan.

Manila will offer P45 billion of Treasury bills at the fortnightly auctions between July and September, reducing the size from the programmed offers totalling P52.5 billion in the second quarter, a Treasury notice to government securities dealers showed.

But it increased its offer for longer-dated Treasury bonds to P63 billion in the third quarter from P54 billion programmed for April to June.

The Treasury has yet to come up with data on its actual debt sales in the second quarter, having withdrawn some of the tenders. It had rejected bids for the benchmark three-month paper six times during the period.

Manila halved the size of 91-day bill auctions to P1 billion under the plan.

But it increased its offer for 182-day and 364-day bills by P500 million each to P2.5 billion and P4.0 billion, respectively.

The Treasury will offer P9 billion of T-bonds at each auction in the third quarter, with maturities of five-, seven, 10-, 20-, and 25-years.

The Southeast Asian country, which aims to keep its budget deficit at P279 billion  or 2.6 percent of gross domestic product this year, has committed to step up spending to help meet its 5 to 6 percent growth target.

It registered a deficit of P22.79 billion in January to May, way below the ceiling of P109.34 billion set for the first half of the year.

Early this month, the government said it was looking to buy back some of its outstanding sovereign debt in a bid to manage its liabilities.