The government of Philippines is planning to raise between $300 and $500 million through securitizing the gambling revenues of the Philippine Gaming and Amusement Corporation (Pagcor), a state-owned entity that controls the national lottery and casinos located throughout the country.

The securities will have a maturity of between five and 10 years and carry a sovereign rating, according to finance secretary Edgardo B. Espiritu. Since the issue will not be guaranteed by the government, proceeds will not be included in the $8 billion foreign borrowing limit imposed on the Philippines by the International Monetary Fund for this year.

Despite the official statements, sources said the likelihood of completing such a deal before year-end was doubtful. "It's not impossible, but it won't be easy, especially coming from the Philippines," commented one Asian ABS banker.

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