UPDATE 1-Philippines says studying 2009 global bond issue

* Manila studying proposals for global bond issue this year

* Philippines 2020 dollar bonds dip on news

* Maintains plan to issue yen bonds to fund 2010 budget

* Traders say government may re-open 2020 dollar bond (Adds traders comments, background)

MANILA, Sept 24 - The Philippines, one of Asia's largest sovereign debt issuers, said on Thursday it was studying investor advice for the sale of a global bond this year to fund next year's budget.

Officials said a decision would not be made anytime soon but Philippines sovereign bonds edged down as the market absorbed the potential for more supply on top of the $2.25 billion already issued by the government this year.

However, officials reiterated that any further issuance this year would be to fund the 2010 budget and not the 2009 budget.

"The Philippine government is looking into suggestions from investment banks and hedge funds for the issuance of global bonds for pre-funding requirements next year in view of ample market liquidity and lower financing costs even for longer maturities," said Finance Secretary Margarito Teves.

Teves is on a non-deal roadshow in New York and issued his comments via a mobile SMS message to reporters.

The Philippines' main plan to raise funds for next year's budget is still to sell at least $500 million in Samurai bonds during the fourth quarter, said National Treasurer Roberto Tan in Manila.

"That's still the plan right now," he said, noting that the Philippines receives bond proposals from banks regularly.

"I understand that there has been a proposal made to the secretary and we will study it," he said.

The government has projected that its 2010 budget deficit will be 233 billion pesos ($4.9 billion), or 2.8 percent of GDP. That would be slightly smaller than this year's projected record gap of 250 billion pesos, or 3.2 percent of GDP.

TIMING ISSUE

Referring to offshore financing of this year's budget, Tan said: "There's no plan to issue for the rest of the year."

The Philippines' 6.5 percent bond due in 2020 <718286BF3=> fell to 107.625/108.00 cents on the dollar on Thursday, Manila-based traders said, from Wednesday's 107.875/108.25, its highest level since the bond was issued in July.

The fall came in an otherwise steady Asian bond market.

If the Philippines does decide to issue more dollar bonds this year it may opt to issue up to $1 billion more of its 2020 bond issue, two sovereign debt traders from big foreign banks based in Manila said.

"It is a timing issue and considering that the ROPs (Republic of the Philippines' bonds) have rallied, timing wise it is a good time, from their point of view," one of the traders said.

Central bank Governor Amando Tetangco, who was on the London leg of the roadshow, said on Wednesday in Manila that investors were eager to extend the duration of their Philippine holdings. [ID:nMAN119055]

One motive to issue bonds in coming months is that interest rates are low, but are expected to rise in the year ahead. In addition, investors may seek a higher risk premium on Philippines bonds next year to account for presidential elections in May. (Additional reporting by Jun Ebias in Hong Kong)