PH sells $2.35-B bonds at record low rates
Published Apr 28, 2020 12:00 am
By CHINO S. LEYCO
Investors swamped the Philippines’ return to the international debt markets that allowed the Duterte administration to secure the lowest coupon rates for the borrowings, the Bureau of the Treasury announced yesterday.
National Treasurer Rosalia V. de Leon
Amid the government’s mounting funding requirement to mitigate the impact of the coronavirus crisis, the Duterte administration sold $2.35 billion worth of Global bonds, marking its second for the year.
The 10-year and 25-year bonds were sold at 2.457 percent and 2.95 percent, respectively, which National Treasurer Rosalia de Leon said are the lowest coupon rates for the debts.
Moody's Investors Service has assigned senior unsecured ratings of Baa2 to the dollar-denominated global bond offerings by the Government of the Philippines, maturing in 2030 and 2045. The rating mirrors the Government of the Philippines' issuer rating of Baa2, Moody’s added.
“The transaction was able to achieve the Republic’s lowest ever coupon for a 10- and 25-year benchmark issuance amidst no less than an environment gripped with pandemic fear,” de Leon said.
“This makes the Philippines, at least for the time being, a diamond in the sovereign issuance space for we were able to convert immense pressure into an opportunity to dazzle in brilliant shine,” she added.
Subscriptions for the issue reached $10.5 billion, or 4.5 times more the size of the offering.
Finance Secretary Carlos G. Dominguez III said the strong demand has demonstrated resiliency of investor interest in the Philippine economy despite the global economic fallout from the COVID-19 pandemic.
“The success of this bond float despite the COVID-induced volatility is also reflective of the global recognition of, and support for, the Duterte administration's four-pillar strategy to mitigate the impact of the global health crisis,” Dominguez said.
The four-pillar strategy includes providing immediate financial support to millions of the most vulnerable families as well as employees of small businesses and mobilizing resources to support frontline health workers and increase testing capacity.
The pillars also includes providing liquidity and support to the economy and putting in place an economic recovery plan that is responsive to the needs of consumers and businesses to create jobs and sustain growth.
Finance Undersecretary Mark Dennis Joven, meanwhile, said they had expected robust reception for the bond offer despite the challenges the global economy is currently facing.
“With the sovereign’s credibility in the international market, coupled with its solid economic fundamentals and long-term growth prospects, this successful issuance has only been a matter of timing,” Joven said.
Proceeds of the issuance will be for the government’s general purposes, including budgetary support.
Citigroup, Credit Suisse, Goldman Sachs (Asia) L.L.C, Morgan Stanley, Standard Chartered Bank and UBS acted as Joint Bookrunners for the transaction. (With Reuters)
National Treasurer Rosalia V. de Leon
Amid the government’s mounting funding requirement to mitigate the impact of the coronavirus crisis, the Duterte administration sold $2.35 billion worth of Global bonds, marking its second for the year.
The 10-year and 25-year bonds were sold at 2.457 percent and 2.95 percent, respectively, which National Treasurer Rosalia de Leon said are the lowest coupon rates for the debts.
Moody's Investors Service has assigned senior unsecured ratings of Baa2 to the dollar-denominated global bond offerings by the Government of the Philippines, maturing in 2030 and 2045. The rating mirrors the Government of the Philippines' issuer rating of Baa2, Moody’s added.
“The transaction was able to achieve the Republic’s lowest ever coupon for a 10- and 25-year benchmark issuance amidst no less than an environment gripped with pandemic fear,” de Leon said.
“This makes the Philippines, at least for the time being, a diamond in the sovereign issuance space for we were able to convert immense pressure into an opportunity to dazzle in brilliant shine,” she added.
Subscriptions for the issue reached $10.5 billion, or 4.5 times more the size of the offering.
Finance Secretary Carlos G. Dominguez III said the strong demand has demonstrated resiliency of investor interest in the Philippine economy despite the global economic fallout from the COVID-19 pandemic.
“The success of this bond float despite the COVID-induced volatility is also reflective of the global recognition of, and support for, the Duterte administration's four-pillar strategy to mitigate the impact of the global health crisis,” Dominguez said.
The four-pillar strategy includes providing immediate financial support to millions of the most vulnerable families as well as employees of small businesses and mobilizing resources to support frontline health workers and increase testing capacity.
The pillars also includes providing liquidity and support to the economy and putting in place an economic recovery plan that is responsive to the needs of consumers and businesses to create jobs and sustain growth.
Finance Undersecretary Mark Dennis Joven, meanwhile, said they had expected robust reception for the bond offer despite the challenges the global economy is currently facing.
“With the sovereign’s credibility in the international market, coupled with its solid economic fundamentals and long-term growth prospects, this successful issuance has only been a matter of timing,” Joven said.
Proceeds of the issuance will be for the government’s general purposes, including budgetary support.
Citigroup, Credit Suisse, Goldman Sachs (Asia) L.L.C, Morgan Stanley, Standard Chartered Bank and UBS acted as Joint Bookrunners for the transaction. (With Reuters)