Republic of the Philippines Investor Presentation March 2018 - PowerPoint PPT Presentation

Republic of the Philippines Investor Presentation March 2018

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Table of Contents Key Terms of the Inaugural Panda Bond…. ............................................................................4  Philippines – China Relations…. .............................................................................................6  Strengthening Credit Profile……………………… .......................................................................9  Favorable Macroeconomic Trends.........................................................................................12  Strong External Position…... ..................................................................................................17  Sound and Stable Financial System…………… .......................................................................20  Sound and Strengthening Government Finances..................................................................22  Accelerating Infrastructure Development.............................................................................29  Annex: Socioeconomic Agenda of the Duterte Administration..............................................32  3

Key Terms of the Inaugural Panda Bond

Key Terms of the Inaugural Panda Bond Offering Summary Issuer Republic of the Philippines Issue Size RMB 1.46 bn AAA National Scale by China Lianhe Credit Rating Co., Ltd; Issuer Rating Baa2 by Moody’s , BBB by S&P, and BBB by Fitch 20 th Mar 2018 Issue Date Book Open Period 9:00am - 16:30pm on 20th Mar 2018 Tenor 3 year Denoms RMB 1 million * 1 million CIBM Trading; Bond Connect Eligible; Trading and Custody PRC Law; Shanghai Clearing House 23 rd Mar 2018 Settlement Date Custody Institution Shanghai Clearing House 5

Philippines – China Relations

Philippines – China Investment and Trade Relations Trade between the two countries is expected to further flourish Robust Philippines-China bilateral merchandise trade Strong growth of Chinese FDIs (USD bn) Net equity FDI (USD mn) and y-o-y growth (%) 30.0 27.6 25.0 Year Total Export Import Balance of Trade 199.2% 2014 18.3 8.5 9.9 (1.4) 20.0 1,775.8% 2015 17.7 6.2 11.5 (5.3) 15.0 10.8 2016 21.9 6.4 15.6 (9.2) 9.2 10.0 2017 23.7 6.9 16.8 (9.9) 5.0 Note: Details may not add up to total due to rounding 0.6 Source: Philippine Statistics Authority (PSA) 0.0 2015 2016 Jan-Nov 2016 Jan-Nov 2017 Source: Bangko Sentral ng Pilipinas (BSP) Major investments between China and the Philippines Filipino Investors in China Chinese Investors in the Philippines San Miguel Group - Beer Shanghai Electric Transfer Engineering(Phil) • • Liwayway (China) Co., Ltd - snack food Dalian Wanyang Heavy Industries Co.,Ltd. • • Solid Industrial (Shenzhen) Co., Ltd - electronic New Hope Central Luzon Agriculture Inc • • SM City in China – retail HLD Clark Steel Pipe Co. Inc. • • URC China Commercial Co., Ltd – biscuits China State Construction Engineering Corporation • • Philippine Airlines Shanghai Office – airline Wuhan Fiberhome International Technologies Phils., Inc. • • Metrobank – financials National Grid Corporation of the Philippines • • Eton Properties Sinosteel (Philippines) Co. Ltd. Inc • • Jollibee/Yong He King • Bench Body • Source: Department of Trade and Industry 7