The Philippines is set to foray into its first foreign bond issuance this year as it launches its dual-tranche dollar-denominated offering.
In an announcement yesterday, it was reported that the Philippines’ bond offering, which will be based on US dollar benchmark, will have tenors of 10 and 25 years.
Use of proceeds from the issuance will be for general budget financing, while the 25-year sustainability bond will also be used to finance/refinance assets in line with the republic’s sustainable finance framework.
The initial price guidance for the 10-year bonds is 120 basis points over Treasuries area, while for the 25-year IOUs it will be around the 6.05 percent area.
The settlement date for the offering will be on May 14, 2024.
Meanwhile, the Bureau of the Treasury (BTr) fully awarded the reissued 10-year treasury bonds during yesterday’s auction.
With a remaining term of nine years and eight months, the reissued security fetched an average rate of 6.825 percent.
The auction was 2.4 times oversubscribed with total tenders reaching P71.2 billion.
With its decision, the BTr raised the full program of P30 billion, bringing the total outstanding volume for the series to P115.6 billion.
