MANILA - The Philippines has secured a $400 million loan from the Asian Development Bank (ADB) to strengthen its domestic capital market and mobilise funds for the infrastructure projects it hopes can spur an economic recovery next year.

The policy-based loan, the ADB said, will help the Southeast Asian economy grow its government and corporate bond markets and expand its investor base.

The Philippines, which is on the edge of a recession after the coronavirus-induced lockdown shuttered business and sapped domestic demand, is banking on its multi-billion dollar "Build, Build, Build" infrastructure programme to help the economy rebound.

Philippine President Rodrigo Duterte has promised to usher in a "golden age of infrastructure" by raising annual spending on roads, airports, ports to 7% of gross domestic product by 2022 from less than 3% previously and above the 5% average of neighbouring countries.

(Reporting by Karen Lema; editing by Barbara Lewis) ((karen.lema@thomsonreuters.com; +632 841-8938;))