SYDNEY — The government of the Philippines is planning meetings in Australia for
the first time as part of a push to widen their investor base and showcase
opportunities in the Southeast Asian nation, the head of the Philippine central
bank's investor relations office said Friday.
Finance secretary Cesar Purisima
will lead a delegation of officials to meet a select group of fixed-income and
public private partnership investors in Sydney and Melbourne from Sept. 12-14,
said Claro Fernandez, executive director of Bangko Sentral ng Pilipinas' IRO.
"When you want to bring in
new business, nothing beats a handshake and face-to-face meeting," Mr.
Fernandez said. He added the idea is to widen the potential market for
Philippine debt and attract more investment from Australia.
Australia's bond managers are
known for their conservative mandates and few move beyond the investment grade
spectrum. But a search for better yields amid plummeting interest rates in
developed countries and the growing attraction of fast-expanding emerging
markets could entice some buyers into a future Philippines offer, said market
participants.
One fund manager, who asked not
to be named, said his fund has begun research on emerging-market debt as it
considers diversifying into countries such as the Philippines.
President Benigno Aquino III's
effort to improve governance and eliminate corruption since assuming office in
June 2010 has yielded his country several credit-rating upgrades, freed up
resources for infrastructure projects, and attracted capital inflows.
The Philippines is one of Asia's
most active sovereign borrowers in the international debt market. Past bond
offerings overseas primarily attracted investors from the U.S., Europe and
Asia.
The Philippine economy expanded
in the April-June quarter at an annual pace of 5.9%, despite strong headwinds
from the sputtering global recovery, Europe's continuing debt crisis and slower
growth in China. That pushed first-half gross domestic product to 6.1%, above
the government's target range of 5%-6%.
Other officials on the September
trip include Trade & Industry Secretary Gregory Domingo, National Treasurer
Roberto Tan, Public-Private Partnership Center Executive Director Cosette
Canilao and BSP Governor Amando Tetangco, or a central-bank representative.
Mr. Tan oversees the government's
domestic and foreign borrowing, while the state-run PPP Center handles major
infrastructure projects identified by the government as suitable for
partnership with private investors.
ANZ, Macquarie, HSBC and Morgan
Stanley are helping arrange the meetings, described as a nondeal roadshow,
meaning a specific debt issue isn't necessarily imminent.
"The Philippines is a very
sophisticated issuer. It likes to keep its fingers on all the regions, and
understands that it's better to do groundwork in advance, in case it needs to
raise funding in future," said one person familiar with the plans.
News of the planned visit comes
days after British energy giant BP raised $500 million Australian dollars in
its first bond offer in Australia, becoming one of only a handful of foreign
corporates to ever test the kangaroo market, a deal that analysts said could
entice other borrowers to follow.
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