bonds

Philippines raises P24 billion from samurai bonds

Ralf Rivas
Philippines raises P24 billion from samurai bonds

Shutterstock

The Philippines initially aims to raise 30 billion yen, but upsizes it to 55 billion yen, equivalent to P24 billion, following strong investor demand

The Philippines raised 55 billion yen (P24 billion or $500 million) through its offering of 3-year samurai bonds, which fetched a zero coupon or were without interest.

This transaction is the first zero-coupon bond transaction issued in the samurai bond market, said the Bureau of the Treasury on Tuesday, March 30.

The bonds will mature on April 12, 2024.

The initial target was around 30 billion yen, but it was upsized to 55 billion yen following strong demand.

“The Philippines’ successful return to the Japanese bond market at this precarious time underlines the continued investor confidence in our economy, brought about by its strong fiscal position and prudent management that augurs well for a robust and sustainable recovery from the economic turmoil brought by the COVID-19 pandemic,” Finance Secretary Carlos Dominguez III said.

The latest issuance follows the country’s zero-coupon bond issuance in the euro market in February 2020.

The Philippines is aiming to raise $5.5 billion from offshore debt markets in 2021 to fund this year’s budget and pandemic response. – Rappler.com

1 Japanese yen = P0.44
$1 = P48.545

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.