Philippine government ABS: pipe dream?

The Philippines government is once again evaluating a securitization deal to alleviate its debts. Among the assets being considered are natural gas and gambling revenues. Local bankers, however, have raised eyebrows at the news.

A previous plan in 1999 to securitize future receivables from the state-owned Philippines Amusement and Gaming Corp Pag Corp which was mandated to Bear Stearns and Lehman Brothers was scrapped because it was deemed impossible to market to domestic and international investors.

In addition, there are legal and taxation issues that make it extremely difficult to launch an asset-backed securitization ABS from the Philippines.

None of this seems to have deterred the government, for the time being at least. Theres talk on the table of doing a securitization of future receivables from a number of government offices, says national treasurer, Sergio Edesa. Were evaluating whether we can go into this, especially on...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222