Philippines issues multi-tenor US dollar bonds to tap global investors

MANILA — The Philippine government returned to the international capital markets on Tuesday with the launch of a three-tranche US dollar-denominated global bond offering, featuring maturities of 5.5 years, 10 years, and 25 years.

According to the Bureau of the Treasury (BTr), the issuance marks the country’s first global bond offering for the year. It follows the government’s successful issuance of USD 2.25 billion and EUR 1 billion in debt instruments in January last year.

Initial pricing guidance set the 5.5-year tranche at 70 basis points above the benchmark US Treasury rate, the 10-year tranche at 100 basis points above the benchmark, and the 25-year bond at approximately 5.90 percent, the BTr said.

“The transaction will be priced later today during the New York trading session,” the Treasury noted.

Credit rating agencies have affirmed the country’s credit standing for the offering. S&P Global assigned its “BBB+” long-term rating to the proposed bonds.

“The bonds represent direct, general, unconditional, unsecured, and unsubordinated obligations of the Philippines (BBB+/Positive/A-2). They rank equally with the sovereign’s other unsecured and unsubordinated debt obligations,” it said.

Moody’s Ratings likewise assigned a “Baa2” rating to the global bonds.

Government officials said accessing offshore markets remains part of the administration’s broader financing strategy, even as the majority of borrowing continues to be sourced domestically to manage foreign exchange exposure.

“The Marcos administration remains firmly committed to promoting strong and inclusive socioeconomic growth. This transaction underscores our steadfast dedication to sound fiscal policy and sustainable development,” Finance Secretary Frederick Go said Tuesday.

“We are confident that our policy direction and reform agenda will continue to resonate with the global investment community and support a successful outcome for this offering.” (PNA)

Via: Sibey-store