The Philippine government successfully raised $3.3 billion from a global bond issuance despite market volatility, demonstrating investor confidence in the country's economic prospects and sustainable finance initiatives.
The Philippine government successfully raised approximately $3.3 billion from a global bond issuance, comprising three tranches, despite ongoing market volatility. Officials announced the successful fundraising on Friday. Finance Secretary Ralph Recto emphasized the efficient execution of the offering, highlighting the government's ability to capitalize on favorable market conditions. He attributed the success to investor confidence in the leadership and policies of the Marcos Jr.
administration, further reinforced by the country's improving credit rating trajectory.The offering comprised a $1 billion 10-year bond priced at T+90 basis points (bps), a $1.25 billion 25-year sustainability bond priced at 5.9 percent, and a €1 billion ($1.04 billion) 7-year sustainability bond priced at MS+125 bps. The initial price guidance was 30 bps for the 10-year bond, 20 bps for the 25-year bond, and 35 bps for the euro-denominated tranche.National Treasurer Sharon Almanza underscored the Philippines' strong borrowing position, noting that all bonds were priced with minimal or no new issue premiums. She highlighted the transaction's success in demonstrating the republic's ability to efficiently capture conducive market conditions and launch a significant dual-currency transaction. The transaction attracted robust demand and strong orderbook momentum across both USD and EUR markets, with interest from a diverse pool of high-quality global accounts. This illustrated investors' confidence in the Republic's credit profile and long-term outlook. This transaction marked the seventh issuance under the country's Sustainable Finance Framework. Proceeds from the 10-year bond will be used for general budget financing, while the 25-year and 7-year sustainability bonds will fund budgetary requirements and ESG (environmental, social, and governance)-aligned projects. Almanza expressed the goal of capitalizing on the current market momentum to secure the most efficient cost dynamics ahead of potential uncertainties in the near future. She expressed gratitude for the continued support of valued investors. HSBC, Standard Chartered Bank, and UBS acted as Joint Sustainability Structuring Banks for the transaction, with Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, and others serving as joint lead managers and bookrunners
GLOBAL BOND ISSUANCE MARKET VOLATILITY INVESTOR CONFIDENCE SUSTAINABLE FINANCE PHILIPPINE ECONOMY
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