{"id":18676,"date":"2024-05-09T03:01:26","date_gmt":"2024-05-09T03:01:26","guid":{"rendered":"https:\/\/energybuzz.ph\/staging\/6915\/philippines-raises-2b-from-dollar-bond-sale\/"},"modified":"2024-05-09T03:01:26","modified_gmt":"2024-05-09T03:01:26","slug":"philippines-raises-2b-from-dollar-bond-sale","status":"publish","type":"post","link":"https:\/\/energybuzz.ph\/staging\/6915\/philippines-raises-2b-from-dollar-bond-sale\/","title":{"rendered":"Philippines raises $2B from dollar bond sale"},"content":{"rendered":"
\n

By Luisa Maria Jacinta C. <\/b>Jocson, <\/b><\/span>Reporter<\/i><\/p>\n

THE PHILIPPINES raised $2 <\/span>billion (P114.7 billion) from its <\/span>f<\/span>irst global bond sale this year, the Bureau of the Treasury (BTr) said on Wednesday.<\/p>\n

The issuance of the dual-tranche 10- and 25-year <\/span>f<\/span>ixed-rate global bonds had a \u201cstrong reception and record tight pricing levels,\u201d National Treasurer Sharon P. Almanza said in a statement.<\/span><\/p>\n

The 10-year notes were priced at 80 basis points (bps) above US Treasuries, tighter than the initial pricing of US Treasuries plus 120 bps.<\/span><\/p>\n

The 25-year sustainability bonds were priced at 5.6% at par, which is also tighter than the initial price guidance of 6.05%.<\/p>\n

Finance Secretary Ralph G. Recto said the government secured the funding at \u201cvery cheap\u201d rates.<\/span><\/p>\n

\u201cThe 10-year spread has been the tightest among all our similar issuances since 2022, while the 25-year sustainability tranche achieved the second-best rate in the government\u2019s history,\u201d he said in a statement.<\/span><\/p>\n

\u201cThe tight pricing, especially compared with higher-rated peers, serves as an indication of the country\u2019s exceptional performance beyond its current credit rating and makes a good case for a rating upgrade,\u201d he added.<\/p>\n

The dollar bonds are shelf-registered with the US Securities and Exchange Commission and will be settled on May 14.<\/p>\n

Proceeds from the issuance will be used for general budget f<\/span>inancing, the Treasury said. Funds raised from the 25-year debt will also be used for \u201cref<\/span>inancing programs and expenditures in line with the republic\u2019s sustainable f<\/span>inance framework.\u201d<\/p>\n

Bank of America, Citigroup, HSBC, JPMorgan, Morgan Stanley, Standard Chartered and UBS were tapped as the joint bookrunners.<\/span><\/p>\n

On Tuesday, Fitch Ratings, Moody\u2019s Ratings and S&P Global Ratings rated the proposed bond of<\/span>fer at \u201cBBB,\u201d \u201cBaa2\u201d and \u201cBBB+,\u201d respectively, matching their ratings for the Philippines\u2019 sovereign debt.<\/p>\n

The BTr said the transaction attracted interest from a \u201cdiverse pool of high-quality global accounts.\u201d<\/p>\n

\u201cDespite elevated volatility in the US Treasury rate markets in recent weeks, the republic took advantage of improving market sentiment following a softer-than-expected US labor market print which alleviated concerns over the Fed rate path.\u201d<\/p>\n

The bond sale showed \u201cstrong demand at much lower borrowing costs versus initial guidance,\u201d Mi<\/span>chael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.<\/p>\n

\u201cIn line with the earlier guidance, it is actually on the high side which is a good signal in terms of large market demand and takeup,\u201d he added.<\/p>\n

Last year, the Philippine government raised $3 billion from its three-tranche dollar bond sale in January, $1.26 billion from its retail dollar bond issue in October and $1 billion from its maiden issuance of Sukuk bonds in December.<\/p>\n

The government\u2019s borrowing program is set at P2.57 trillion this year, a quarter of which will come from foreign sources.<\/p>\n

The government borrows from external and local sources to fund a budget deficit capped at 5.6% of the gross domestic product.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

THE PHILIPPINES raised $2 billion (P114.7 billion) from its first global bond sale this year, the Bureau of the Treasury (BTr) said on Wednesday.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[17793,8478,14644,3618,1145,1572,6052,7464],"class_list":["post-18676","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-2b","tag-bond","tag-bworldonline","tag-dollar","tag-from","tag-philippines","tag-raises","tag-sale"],"yoast_head":"\nPhilippines raises $2B from dollar bond sale - Energy Buzz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energybuzz.ph\/philippines-raises-2b-from-dollar-bond-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Philippines raises $2B from dollar bond sale - 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