The Philippines is returning to the international debt market before the year comes to an end, as it launches its second US dollar denominated bond offering for 2020.
According to Moody’s Investors Service, the global bond offerings by the Philippine government will be maturing in 2031 and 2045, or will have a tenor of 10.5 and 25 years.
Moody’s said in a statement yesterday it has assigned senior unsecured ratings of Baa2 to the dollar-denominated issuance.
S&P Global Ratings also said yesterday it has assigned its BBB+ long-term foreign currency rating to the proposed benchmark-size US dollar denominated senior unsecured notes to be issued by the Philippines.
The proceeds of the issuance is seen to support the government’s general budgetary requirements, as the country deals with the coronavirus pandemic, as well as recovery measures needed amid its impact on the economy.
Rosalia de Leon, national treasurer, has opted not to comment on the offering, as of press time.
In April, the government raised $2.35 billion through a double tranche 10-year and 25-year global bonds.
Meanwhile, the Bureau of the Treasury has also fully awarded bids for the three-year treasury bonds during yesterday’s auction.
The sale attracted total tenders of P68.5 billion, more than 2.2 times the P30 billion offer.
With a remaining term of two years and nine months, the security fetched an average rate of 2.169 percent, 5.5 basis points lower than the previous average of 2.224 percent.
“Demand for belly of curve remains strong,” de Leon said.
