Negosyante News

November 5, 2024 6:37 pm

BTr: Government Raised $3 Billion Through Global Blonds

IMG Source: Philstar

The Bureau of Treasury (BTr) said the government raised $3 billion (₱164 billion) from the international debt market through triple-tranche global bonds, optimizing high demand and easing global interest rates to finance the country’s budgetary requirements.

 

The government raised $500 million through 5.5-year tenor bonds with a coupon rate of 4.74% while $1.25 billion was earned from the issuance of bonds with a maturity of 10.5 years and a 5% rate.

 

The 25-year sustainability bond reached an average of 5.5% and raised $1.25 billion.

 

Three months ago, the administration started in the foreign debt market, but only raised $2 billion due to high-interest rates ranging from 5% to 6%.

 

The Treasury said the country used market optimism since inflation and the US Federal Reserve tightening are expected to ease up.

 

National treasurer Rosalia de Leon said the latest bond sale proved that the Philippines has the ability to compete in a challenging global environment and respond to market demand and conditions.

 

“The blockbuster reception and tight pricing achieved in all tranches of our latest offering, despite coming on the heels of curtain-raisers done by other big-name sovereigns, reaffirms the distinction of Philippine credit as a favored proposition even in times of uncertainties in the market landscape,” De Leon explained.

 

Moreover, Finance Secretary Benjamin Diokno said the strong demand for the first international bond offering of 2023 has the potential to attract more foreign investors and allows the Philippines to have a more stable economy this time around.

 

The government plans to use sales from the 5.5- and 10.5-year global bonds for general purposes such as budgetary support.

 

Meanwhile, proceeds from the 25-year green bonds will also be used for general purposes and to finance assets under the country’s sustainable finance framework.

 

The latest global bonds are expected to secure ratings of Baa2 from Moody’s, BBB+ from S&P Global Ratings, and BBB from Fitch.

 

A Securities Inc., Goldman Sachs, HSBC, Morgan Stanley, Standard Chartered Bank, UBS Group AG, and Deutsche Bank AG acted as joint bookrunners for the issuance.

Source: Philstar 

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