PH offers dollar, eurobonds to mark return to int’l market

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The Philippine government has set its return to the international capital markets this year by launching its dollar- and euro-denominated global bond issuances.

The Bureau of the Treasury (BTr) said it is offering 10-year and 25-year dual-tranche dollar denominated global bonds as well as a seven-year euro sustainability bonds. 

This marks the Philippines’ first ever euro sustainability bond as well as the country’s return to the euro bond markets since April 2021. 

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“The Marcos administration’s commitment towards stronger investor dialogue is evident in our frequent investor engagements. We have constantly communicated our strategies to achieve robust socioeconomic development for the Republic, and hence, we are confident that our investors will remain receptive to the Philippine story,” Finance Secretary Ralph Recto said in the statement.

Proceeds from the sale of the 10-year dollar-denominated global bonds will go to general budget financing, while the amount to be raised from the 25-year dollar bonds as well as the seven-year euro offer will likewise be used for general budget financing, and to finance or refinance assets in line with the Philippines’s Sustainable Finance Framework.

The initial price guidance of the 10-year and 25-year dollar tranches were announced at 120 basis points over Treasuries area and 6.100 percent area respectively, while the 7-year tranche was pegged at MS+160 bps. 

“With a constructive market developing over the week, we see an opportune window for the Republic to re- enter the capital markets. Our goal is to capitalize on the current market momentum to secure the most efficient cost dynamics ahead of potential uncertainties in the near future,” National Treasurer Sharon Almanza said.

“We look forward to the continued support of our valued investors,” Almanza said.

The new transaction followed the Philippines $2.5 billion triple-tranche bond offering in August 2024 and $2 billion dual-tranche bond offering in May 2024.

Citigroup, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as Joint Lead Managers and Bookrunners for the transaction.

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