5-year T-bond fetches 3.375% coupon rate

5-year T-bond fetches 3.375% coupon rate

MANILA – The country’s freshly-issued five-year treasury bond (T-bond) fetched a coupon rate of 3.375 percent during an auction Tuesday.

The Bureau of the Treasury (BTr) offered the debt paper for PHP35 billion and tenders amounted to PHP80.7 billion. The auction committee made a full award.

“Auction committee made (a) full award with strong market demand for the new five-year tenor,” National Treasurer Rosalia de Leon told journalists in a Viber message.

She said the coupon rate for the debt paper is “lower than (the) secondary level for comparable tenor.”

Earlier, de Leon said they continue to take advantage of the low domestic interest rate to raise funds for the various government programs eyed to help in the economic recovery.

The government plans to raise around PHP3 trillion this year, the bulk of which will be sourced from the domestic market.

Last March 30, it issued 55-billion Japanese yen (about PHP24 billion) worth of first-ever three-year senior unsecured zero-coupon fixed-rate Samurai bond.

De Leon said issuance of the zero-coupon Samurai bond is a first for any country because only Japanese issuers are previously allowed to do that. (PNA)

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