The government is eyeing to raise funds through a triple tenor US dollar-denominated bond offering, an official document showed.
According to a document shared with reporters yesterday, the government is looking at US dollar-benchmark sized bond issuance with tenors of five, 10.5 and 25 years.
Use of proceeds for the first two tenors will be for general budget financing, while the 25-year paper will also be for general budget financing as well as to “finance/refinance assets in line with the republic’s sustainable finance framework.”
Last month, Finance Secretary Carlos Dominguez has called on investors to support the Philippines’ first-ever offering of at least $500 million in green bonds in the offshore debt market to help raise funds for the country’s clean energy projects and other sustainable initiatives to mitigate the ill effects of the worsening climate crisis.
The initial price guidance for the five-year bonds is 125 basis points (bps) over Treasuries area; for the 10.5-year, 165 bps over area; and for the 25-year IOUs, around the 4.7 percent area.
Joint lead managers and book runners are Bank of China, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Mizuho Securities, Morgan Stanley, Standard Chartered Bank and UBS.
Meanwhile, the Bureau of the Treasury yesterday awarded P13.9 billion of its P15 billion planned offering for treasury bills amid partial awards granted for the 91-day and 364-day IOUs.
The 91-day, 182-day and 364-day securities fetched rates of 1.536 percent, 1.607 percent and 1.792 percent, respectively.
“Saw rates continue to move up as expectations of further Fed action to tame inflation including start of QT (quantitative tightening),” Rosalia de Leon, national treasurer, said.
“We saw that increases demanded (were) tempered by expectations that BSP (Bangko Sentral ng Pilipinas) will keep rates steady,” she added.
