THE PHILIPPINE government on Tuesday, January 20, launched three tranches of US dollar-denominated global bonds with maturities of 5.5 years, 10 years, and 25 years.
The Bureau of the Treasury (BTr) said the offering is the country’s first this year, following the issuance of USD 2.25 billion and EUR 1 billion in debt instruments in January last year.
The BTr said the 5.5-year bond was initially priced at 70 basis points above the benchmark Treasury rate, the 10-year at 100 basis points above the benchmark, and the 25-year at around 5.90 percent.
S&P Global, in a report, has assigned its “BBB+” long-term rating on the proposed debt instruments.
“The bonds represent direct, general, unconditional, unsecured, and unsubordinated obligations of the Philippines (BBB+/Positive/A-2). They rank equally with the sovereign’s other unsecured and unsubordinated debt obligations,” it said.
Moody’s, in turn, has assigned its “Baa2” rating on the said global bonds.
Tapping the international market is part of the government’s strategy to secure funding of its various programs, although finance officials have said that bulk of the borrowings are accounted for by domestic fund sources to address foreign exchange risks.”The Marcos administration remains firmly committed to promoting strong and inclusive socioeconomic growth. This transaction underscores our steadfast dedication to sound fiscal policy and sustainable development,” Finance Secretary Frederick Go said Tuesday.
“We are confident that our policy direction and reform agenda will continue to resonate with the global investment community and support a successful outcome for this offering,” Go added. (PNA)
