THE Philippines is preparing for its upcoming triple-tranche global bond offering, its second US dollar-denominated issuance for the year.
Fitch Ratings, Moody’s Ratings and S&P Global Ratings have separately issued statements yesterday assigning their respective ratings on the Philippines’ bond offer.
Sought for comment, national treasurer Sharon Almanza said that it will be a benchmark-sized US dollar triple tranche issuance.
According to Moody’s, the dollar bond issuance will mature in 2030, 2035 and 2049.
“The proceeds from the bonds are intended for general purposes including budgetary support. A portion of tranche maturing in 2049 is also intended for eligible projects under the Philippines’ Sustainable Finance Framework,” Moody’s said.
Just last May, the Philippines successfully raised $2 billion from its dual-tranche global bond offering.
The new 10-year tranche was priced at 80 basis points (bps) over Treasuries area, reflecting a tightening of 40 bps from initial price guidance.
Meanwhile, the new 25-year sustainability bond was priced at 5.6 percent at par, 45 bps tighter than the initial price guidance.
Proceeds from the sale of the 10-year global bonds will be used for general budget financing while proceeds from the sale of the 25-year tenor are also intended for general budget financing as well as refinancing programs and expenditures in line with the Republic’s Sustainable Finance Framework.
Meanwhile, the Bureau of the Treasury (BTr) yesterday fully awarded the reissued 20-year treasury bonds during its regular auction.
With a remaining term of 19 years and nine months, the reissued securities fetched an average rate of 6.198 percent.
The auction was 1.8 times oversubscribed with total tenders reaching P45.1 billion.
With its decision, the BTr raised the full program of P25 billion, bringing the total outstanding volume for the series to P102.7 billion.
