Connect with us

Hi, what are you looking for?


PHL to raise at least $1.5B from dollar bonds

US dollar bills are seen on a light table at the Bureau of Engraving and Printing in Washington in this Nov. 14, 2014 file photo. — REUTERS

THE PHILIPPINE government started the new year with a return to the global bond market via a benchmark-sized US dollar-denominated bond offering.

Documents from the Bureau of the Treasury (BTr) showed the Philippines is looking to raise at least $1.5 billion from the three-tranche offering.

The offering consists of dollar bonds with tenors of 5.5 years, 10.5 years, and 25-year “green” or sustainability bonds of at least $500 million each.

This is the second global bond offering under the Marcos administration, which took office in the middle of 2022. In October 2022, the government raised $2 billion from the three-tranche US dollar bond offering.

The BTr document showed the initial price guidance for the 5.5-year and 10.5-year tenors are set around the level of Treasuries plus 155 basis points (bps) and 195 bps, respectively.

The price guidance for the 25-year sustainability bonds is set around the 5.95% area.

The Treasury said proceeds of the bonds will be used for general budget financing, as well as the financing or refinancing of assets in line with the government’s sustainable finance framework.

The joint lead managers and bookrunners of the offering are BofA Securities, Deutsche Bank, Goldman Sachs, HSBC (B&D), Morgan Stanley, Standard Chartered Bank and UBS.

UBS and Standard Chartered are both designated as sustainability structuring banks.

The 5.5-year papers will mature in July 2028, the 10.5-year notes in July 2033, and the 25-year sustainability bonds in January 2048.

Moody’s Investors Service assigned the latest dollar bond offering a senior unsecured rating of “Baa2,” which mirrors the Philippine government’s issuer rating.

S&P Global Ratings also assigned a rating of “BBB+” while Fitch Ratings gave it a “BBB” rating.

Aside from the bond offering in October, the government also raised $559 million from a yen-denominated Samurai bond issue in April and sold $2.25 billion worth of dollar-denominated notes in March.

The government borrows from external and local sources to fund a budget deficit capped at 6.1% of gross domestic product (GDP) for 2023.

For this year, the government will borrow P2.207 trillion, slightly lower than the P2.212-trillion borrowing plan in 2022.

This year’s borrowing mix is 75:25 in favor of domestic sources. The government plans to borrow P1.654 trillion domestically — of which P1.6 trillion will be from fixed-rate Treasury bonds.

It plans to borrow P553.5 billion from sources outside the country, of which P265 billion will be from bonds and other inflows, and the rest from program and project loans.

The National Government’s outstanding debt rose to a record-high of P13.644 trillion as of end-November. At the end of the third quarter, the outstanding debt as a share of GDP was at 63.7%, the highest in 17 years. — Luisa Maria Jacinta C. Jocson

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



TAIPEI/PRAGUE — Taiwan President Tsai Ing-wen held a telephone call with Czech President-elect Petr Pavel on Monday, a highly unusual move given the lack...


MANILA — The head of the Philippine nickel mining industry warned on Tuesday that the government’s plan to impose an up to 10% tax...


REUTERS/JOHANNES P. CHRISTO/FILE PHOTO SINGAPORE/WASHINGTON – The International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to “surprisingly resilient” demand...


MVGS founding partners Attys. Eduardo A. Martinez, Manuel Z. Gonzalez and Mark O. Vergara By Angela Kiara S. Brillantes Despite the past years under...


Customers of Smart Communications, Inc. (Smart) and value brand TNT may go to SM Supermalls across the country to register their SIMs and comply...


Photo from Food is a basic human necessity, and everyone needs food to live. However, providing enough food security and, moreover, nutrition security...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.