The Bureau of the Treasury (BTr) has fully awarded bids for the seven-year treasury bonds auctioned yesterday, and has also sold a significant amount via its tap facility window amid strong market demand for the government IOUs.
The newly-issued securities were almost three times oversubscribed, attracting total tenders of P90.4 billion compared to the P35 billion offering.
The coupon rate for the bond settled at 3.625 percent, lower than prevailing secondary market rate, which is at 3.67 percent.
“Healthy auction with strong demand for seven-year at rates marginally lower than secondary levels,” Rosalia de Leon, national treasurer, told reporters via Viber yesterday.
The BTr also awarded another P25 billion via its tap facility yesterday, with demand reaching P42.12 billion.
De Leon said the BTr is “taking advantage of liquidity and is stretching maturity.”
The Philippines has also arranged a series of investor meetings in Asia, Europe and the United States for a proposed four-year and/or 12-year and/or 20-year euro-denominated bond offering, according to an announcement on Bloomberg last Monday.
The meetings were reportedly generating good signs of interest. – Angela Celis
