PHL Panda bonds over 6 times oversubscribed

The Panda bonds issued by the Philippine government were oversubscribed by over 6 times, the Bangko Sentral ng Pilipinas’ Investor Relations Office (IRO) reported Tuesday.

“The Philippine government’s inaugural issue of renminbi-denominated bonds, or Panda bonds, was warmly received by the Chinese and other offshore markets with oversubscription hitting about 6.32 times, the all-time largest coverage for any Panda sovereign issuer,” the IRO noted in an emailed statement.

“Bids reached RMB9.22 billion compared with the Philippine government’s debt offering of RMB1.46 billion,” it said.

The price range was initially set at 5.00 to 5.60 percent, but the oversubscription was able to push the rate at 5.00 percent.

“The Philippine government’s successful inaugural issuance of Panda bonds highlights the investor confidence that the country enjoys on the back of its strong credit profile,” Finance Secretary Carlos Dominguez III noted in the same statement. —Jon Viktor Cabuenas/VDS, GMA News