The Philippines raised 2.1 billion euros (around P122.38 billion or $2.5 billion) in a 3-part bond sale, the Bureau of the Treasury (BTr) said on Thursday, April 22.

This is the largest euro transaction and the first triple-tranche euro offering of the Philippines, proceeds of which will be for “general purposes, including budgetary support” amid the coronavirus pandemic.

The coupon rate for the 4-year bonds stood at 0.25% and the 12-year bonds at 1.2%, while the longest-dated 20-year bonds were at 1.75%.

The BTr said all tranches tightened by 25 basis points from the initial price guidance due to strong demand.

The transaction is expected to settle next Wednesday, April 28.

The global bonds are expected to be rated Baa2 by Moody’s, BBB+ by Standard & Poor’s, and BBB by Fitch.

“Investors apparently believe we have what it takes to ride out the COVID-19 crisis on the strength of the fiscal discipline that has been maintained and the tax measures plus other reforms that have been carried out by the government,” said Finance Secretary Carlos Dominguez III.

This is the Philippines’ 4th bond offering since the pandemic.

“The ability to stretch our maturities to the 20-year tenor at tight pricing underscores that investors are indeed taking a long view on our return prospects,” said National Treasurer Rosalia de Leon.

The latest borrowing came just weeks after the Philippines raised 55 billion yen (P24 billion or $500 million) through its offering of 3-year samurai bonds, which fetched without interest.

In December 2020, the country raised $2.75 billion or around P132 billion from its sale of dollar-denominated bonds. – Rappler.com

1 euro = P58.28
$1 = P48.45