Government financial institutions (GFIs) subscription shares in the planned 10-year P50-billion National Development Co. (NDC) reconstruction bonds have been cut by half, with the private sector filling in the rest of the float.

NDC chair and central bank Monetary Board member Peter B. Favila said the issuance is no longer exclusive to GFIs Land Bank of the Philippines, Development Bank of the Philippines and Social Security System.

The GFIs, which have been assured sovereign guarantees, were supposed to subscribe to P12.5 billion each. The fourth GFI was Government Service Insurance System but the pension fund opted not to participate.

“They are only proposing before to subscribe to P12.5 billion each but we’ve been overtaken by events and now things have changed,” said Favila.

“So now we’re doing this mix we’re splitting the bond float to 50 percent public sector and 50 percent private, he added.

Favila, who is also trade chief, said the issuance will take place this quarter. “We want to do this soon because we already have the authority for the P50 billion and if we don’t release it will cost us we have carry over that.”

The government was planning to offer only P12.5 billion to the private sector previously but because of some expressed interests, the NDC has raised the float to P25 billion.

The Department of Finance has reviewed the revised Executive Order 824, originally mandating the NDC to issue the P50-billion infrastructure bonds as part of the P330-billion government economic stimulus program.

The DOF wants to issue the bonds tranches. The funding requirements from both the public and private sectors will dictate how much of the NDC bonds will be issued at any given float.