The Marcos administration forays into its first foreign bond issuance under its term, as the government seeks to raise at least $500 million through its triple tenor US dollar-denominated bond offering.
According to a document shared with reporters yesterday, the multi-tranche offering will have tenors of five, 10.5 and 25 years.
The issue size is based on US dollar benchmark, or at least $500 million.
Use of proceeds from the issuance will be for general budget financing, while the 25-year sustainable bond will also be used to “finance/refinance assets in line with the republic’s sustainable finance framework.”
The initial price guidance for the five-year bonds is 155 basis points (bps) over Treasuries area; for the 10.5-year, 220 bps over area; and for the 25-year IOUs, around the 6.55 percent area.
Joint bookrunners are BofA Securities, Goldman Sachs, HSBC (B&D), J.P. Morgan, Morgan Stanley, SMBC Nikko, Standard Chartered Bank and UBS.
Last March, the Philippine government successfully raised $2.25 billion also from its triple-tranche US dollar bond offering.
Of the said amount, $500 million was accounted for by five-year bonds, $750 million by the 10.5-year paper and $1 billion by the 25-year global bonds issued under the Sustainable Finance Framework which marked the republic’s debut Environmental, Social and Governance Global Bonds offering. – Angela Celis
