DOF in talks with JP Morgan to boost Philippines capital market

MANILA, Philippines — The Department of Finance (DOF) held a high-level meeting with JP Morgan officials recently to discuss areas of collaboration that can strengthen the Philippine capital market, including the potential inclusion of government-issued securities in the JP Morgan Bond Index.

Finance Secretary Ralph Recto led the discussions, which also covered JP Morgan’s ongoing operations in the Philippines and avenues for partnership.

“The inclusion in the JP Morgan Bond Index would enhance foreign investor access to peso-denominated government bonds, reduce friction costs and strengthen the country’s investment attractiveness,” the DOF said in a social media post.

Joining Recto were DOF Undersecretary and chief economist Domini Velasquez as well as National Treasurer Sharon Almanza.

JP Morgan’s team include vice chair for public sector Daniel Zelikow, senior country officer Carlos Mendoza and other senior officials specializing in public sector and corporate banking.

While no specific timeline was disclosed, discussions are expected to continue as the DOF works to meet the requirements for index inclusion.

JP Morgan, a leading global financial services firm, has been a long-time partner in advancing financial markets worldwide. Its interest in deepening collaboration with the Philippines underscores the potential for transformative growth in the country’s investment landscape.

The JP Morgan Bond Index is a widely recognized benchmark index that tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. It includes government bonds that are denominated in major foreign currencies, typically the dollar.

The inclusion will position the Philippines as a more accessible and competitive market for international funds, aligning with the government’s broader agenda of enhancing the depth and efficiency of the local capital market.

Metropolitan Bank & Trust Co. (Metrobank) earlier said the Philippines would likely benefit from a renewed wave of investor interest if the country is re-included in the index.

Metrobank chief economist Nicholas Mapa had said talks between government officials and JP Morgan are a positive sign, suggesting that the country may have a more significant presence in the index.

“The return of the Philippines to any potential bond index would translate to increased foreign investment flows. This is important because it could bring more foreign money into the Philippines,” Mapa said.