MANILA, Philippines – The Marcos administration borrowed $2 billion (₱117 billion) from international investors in what is considered its first-ever global bond float.
The Bureau of the Treasury (BTr) confirmed that the multi-tranche offered includes Securities and Exchange Commission-registered fixed rate global bonds with “maturities of five, 10.5, and 25 years.”
The transaction is expected to be ironed out on October 13.
“The 5- and 10.5-year bonds fetched coupon rates of 5.17% and 5.609%, respectively. They were also priced 35 basis points tighter than the US Treasury’s initial pricing of +120 bp and +185 bp,” ayon sa ulat.
“The 25-year bonds, which were issued under the country’s Sustainable Finance Framework, had a yearly 5.95% interest rate. It was also priced at 6.100%, 45 bps tighter than the US Treasury’s initial price guidance. The bond float secured ratings of Baa2 from Moody’s Investors Service, BBB+ from S&P Global Ratings, and BBB from Fitch Ratings,” ayon pa rin sa ulat.
BTr said the proceeds from the 5- and 10.5-year bonds will be used for “general purposes, including budgetary support.”
“The proceeds from the 25-year Global Bonds will be applied to finance or refinance assets under the Republic’s Sustainable Finance Framework,” ayon sa ahensya.
“the “strong” demand for the Marcos administration’s first international bond offering reflects investor confidence in his government and its six-year plan for a more inclusive, resilient, and prosperous economy.” ayon naman kay Finance Secretary Benjamin Diokno.
“Just as we were able to deftly capture a good execution window amid a daunting volatile market environment to attain our financing objectives at favorable cost, we too shall rise above the present difficulties through our eight-point economic blueprint toward differentiating ourselves as the prime destination of choice among quality-conscious investor,” ang wika naman ni National Treasurer Rosalia de Leon.
The country’s foreign borrowings increased slightly to ₱4.08 trillion “as of end-August.”
The total debt stock has already exceeded the ₱13 trillion mark. Chris Joseph
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