Manila, Philippines — Finance Secretary Cesar V. Purisima on Tuesday gave the green light to his staff to launch the government's first overseas peso-denominated borrowings to take advantage of the favorable market conditions.

Amid speculations that the government will issue up to $1 billion peso global bonds as early as this week, Purisima admitted that he already instructed his staff to launch the maiden peso bonds if there is a best opportunity.

“I give them the directive to execute at the best possible time for the market,” Purisima told reporters.

A Bloomberg report quoting an unnamed government source, said the country will be selling at least $500 million bonds to offshore investors and it can be raised to $1 billion depending on the demand this week.

The government already hired six banks to arrange the sale of at least $500 million worth of 10-year peso-denominated notes, led by Citigroup Incorporated and Deutsche Bank AG.

The government also hired Credit Suisse Group AG, Goldman Sachs Group Incorporated, HSBC Holdings Plc and JPMorgan Chase and Company as joint book runners for the global bonds.

The Bangko Sentral ng Pilipinas (BSP) approved last week the government's plan to issue as much as $1 billion worth of 10-year, peso-denominated notes to overseas investors.

Sought for comments on the reported peso global bonds issue this week, National Treasurer Roberto B. Tan, said in a text message “nothing is firm yet.”

Tan earlier said the global peso bonds will offer yields similar to local- currency notes and will “follow the structure” of the dollar debt.

He also said the government may adjust its borrowing for the rest of the year if it raises $1 billion from the global peso bond offer.

The global bonds, which will be issued in pesos but could be settled in dollars, are aimed at reducing the country's foreign exchange risk.

Purisima earlier said the government may sell more peso global bonds next year, citing investors are very interested in country's peso global bonds.

The Philippines, Asia's largest sovereign issuer of foreign currency debt, is planning foreign debt issues of $2.5 billion next year.

The bond sale would help finance the country's budget deficit this year, forecast to hit a record P325 billion, or 3.9 percent of gross domestic product (GDP).

The government expects to narrow its budget deficit to 3.2 percent of GDP, or P290 billion, in 2011. Under its 2011 spending budget proposal, it has assumed a 5 percent economic growth.