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i. Other investments by residents13 which will require settlement in foreign

currency in favor of another resident shall be governed by the rules on
resident to resident transactions under Part I, Chapter II hereof.

2. Outward investments by residents –

a. Debt and equity securities issued offshore by non-residents, including

depositary receipts
b. Offshore foreign currency-denominated mutual funds and UITFs
c. Foreign currency-denominated intercompany loans to offshore parent
companies/subsidiaries of residents with an original tenor of at least
one (1) year
d. Investments in real property abroad, including condominium units
e. Foreign currency-denominated investment instruments issued onshore
by non-residents

(As amended by Circular No. 698 dated 5 November 2010, Circular No. 742 dated
21 November 2011, Circular No. 794 dated 18 April 2013 and Circular No. 925 dated
13 September 2016)

PART FOUR. OFFSHORE BANKING UNITS, REPRESENTATIVE OFFICES AND

FOREIGN CURRENCY DEPOSIT UNITS

Chapter I

OFFSHORE BANKING UNITS OF FOREIGN BANKS

Section 45. Definition of Terms. As used in this Chapter, the following terms
shall have the meaning indicated unless the context clearly indicates otherwise:

1. “Offshore Banking” shall refer to the conduct of banking transactions in

foreign currencies involving the receipt of funds principally from external sources and,
as allowed in this Manual, from internal sources and utilization of such funds, as
provided herein.

13
Such as (a) bonds/notes by the Republic of the Philippines or other Philippine and/or residents;
(b) Instruments held for sale/trading by banks operating in the Philippines: (i) bond/notes issued
offshore by the Republic of the Philippines or other Philippine resident entities; and (ii) debt securities
issued by non-residents that are payable in foreign currency, provided the required
license/approval/clearance/other requirements of the Securities and Exchange Commission and other
government agencies have been obtained/complied with; and (c) equity securities issued by residents
and listed abroad

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