PH issues $3-B multi-tranche global bonds

PH issues $3-B multi-tranche global bonds

MANILA – The Philippines on Tuesday sold a total of USD3 billion worth of 5.5-year, 10.5-year and 25-year US dollar-denominated global bonds, with the latter a part of the Sustainable Finance Framework, the biggest for the government so far.

This is the second global bond offer under the Marcos administration following the USD2 billion triple tranche bond offering in October 2022.

The 25-year sustainable bond offering is the fourth environmental, social and governance (ESG) bond offering and follows those offered in October last year, the JPY70.1 billion four-tranche Samurai-bond in April 2022, and the USD2.25 billion triple-tranche bond offering in March last year.

The rate of the fresh 5.5-year and 10.5-year debt papers were priced at 105 basis points (bps) and 145 bps above similar tenor US Treasuries, with a coupon of 4.625 percent and 5 percent, respectively.

The coupon rates are 50 basis points tighter than the initial price guidance of 155 bps area and 195 bps area, respectively.

In turn, the 25-year Sustainability bond was priced at 5.50 percent at par, 45 bps tighter than initial price guidance of 5.95 percent area.

The government is expected to settle the issuance this Jan. 17.

In a statement, Finance Secretary Benjamin Diokno said results of the government’s initial bond offering this year “represents a strong vote of confidence by international investors.”

“It is a testament to the Republic’s sound economic fundamentals and the resilience of our economy in the face of volatile global financial markets,” he said.

Diokno said “we are pleased to see international investors’ recognition of the Philippines’ strong economic recovery, sound fiscal policies, and sensible socioeconomic agenda to promote sustainable and inclusive economic growth.”

National Treasurer Rosalia de Leon said “the blockbuster reception and tight pricing achieved in all tranches of our latest offering, despite coming on the heels of curtain-raisers done by other big-name sovereigns, reaffirms the distinction of Philippine credit as favored proposition even in times of uncertainties in the market landscape.”

“It is both a reward for our masterful navigation of the pandemic crisis and a motivation to become a beacon for growth in a period of dimming global prospects,” she added. (PNA)

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