Connect with us

Hi, what are you looking for?


PHL raises $3B from global bond sale

THE PHILIPPINES raised $3 billion (P146 billion) from the sale of US dollar-denominated global bonds in a dual-tranche offering, which will be used to fund the national budget, a Treasury official said. 

National Treasurer Rosalia V. de Leon said the 25-year tranche raised $2.25 billion, while the 10.5-year tranche generated $750 million.

The 10.5-year bonds were priced at 60 basis points (bps) over the benchmark US Treasury yield, carrying a 1.95% coupon, while the 25-year debt papers fetched a coupon of 3.2%, the Bureau of the Treasury (BTr) said.

Ms. De Leon said the “heavy bias towards the 25-year offering” shows that the Philippines’ credit remains attractive for investors despite the impact of the coronavirus pandemic.

“Investors see our economic revival is imminent, strong, and long lasting,” she added.

The government will use the fresh funds to support the national budget amid the pandemic.

“This (global bonds) highlights the continuing confidence of the international investor community in the Philippines,” Finance Secretary Carlos G. Dominguez III said in a statement.

The Philippines will issue the bonds on July 6.

“Despite relatively volatile markets after the June FOMC (Federal Open Market Committee) meeting, the Republic was able to take advantage of the improving dynamics in both Treasury and credit markets and announce the transaction on Monday,” the BTr said.

The US Federal Reserve hinted earlier this month that it may need to start increasing its policy rates twice in 2023 as the US economy’s recovery picks up pace.

S&P Global Ratings assigned a “BBB+” long-term foreign currency rating to the issuance while Fitch Ratings gave a “BBB” rating with a stable outlook, similar to the sovereign rating the Philippines currently has.

Bank of China, Deutsche Bank, Goldman Sachs, Morgan Stanley, MUFG Securities, Standard Chartered Bank, and UBS served as the joint bookrunners for the transaction.

The issuance marked the third time the country tapped the international debt markets this year, following the $2.5 billion worth of euro-denominated notes it sold in April and the $500-million yen-denominated Samurai bonds issued in March.

The government is planning to raise a total of $7 billion (P340.5 billion) from the international debt market this year.

The BTr wants to borrow P3 trillion from local and foreign sources this year to fund its budget deficit seen to widen to 9.3% of gross domestic product.

Economic managers set an 85:15 borrowing mix for the year in favor of domestic sources to minimize risks from foreign exchange volatility and other external developments. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



The UK government will invest £100m in Britishvolt as the car battery manufacturing startup seeks to build Britain’s first large-scale “gigafactory” in the north-east...


Bankers and accountants are among those being summoned back to their offices after the government scrapped its work-from-home guidance in England with immediate effect....


The kitchens of Michelin-starred restaurants too often descend into alternative “moral universes” where bullies and bad behaviour thrive, a study has suggested. While Gordon...


A company controlled by the Duke of York and used to manage his investments is more than £200,000 in debt, according to newly filed...


Rogue waste collectors who fly-tip household rubbish will be targeted under a government crackdown. Fly-tipping increased sharply last year to 1.1 million cases in...


Peloton Interactive lost more than 25 per cent of its value on Wall Street at one point last night after the exercise bike maker...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.