Discount bonds to fund PPP (New entity may be created to handle.

Byline: Louella D. Desiderio

The government is looking to create an entity that will issue zero coupon bonds for the government's public-private partnership (PPP) drive, a Cabinet official yesterday said.

"We will create an entity that will be issuing the bonds or we will use an existing entity," Finance Secretary Cesar V. Purisima told reporters yesterday following a budget hearing at the House of Representatives.

He declined to be more specific, but said the government was looking to sell the securities to pension funds and insurance firms, with the proceeds to be used to fund vital infrastructure projects.

"We would like to structure something …