Marcos admin raises $3B from US dollar-denominated bond offer

The Marcos administration has raised a total of $3 billion or about P164 billion from its sale of triple-tranche dollar-denominated bonds, marking its second fund raising effort in the offshore debt market.

National Treasurer Rosalia de Leon described the government's return to the international capital markets as “blockbuster” as the order-book peaked at $28.2 billion for all the tranches of the bond offer.

The administration raised $500 million for the 5.5-year tranche, $1.25 billion for the 10.5-year tranche, and $1.25 billion for the 25-year ESG or environmental, social and governance bonds.

The 5.5-year tranche was priced at a coupon rate of 4.625%, while the 10.5-year tranche received an interest rate of 5%.

The 25-year ESG was priced at a coupon rate of 5.50%.

The Treasury said the government intends to use the proceeds of the 5.5-year and 10.5 year bonds for “general purposes of the Republic, including budgetary support.”

Meanwhile, the proceeds from the 25-year ESG bond will be also applied to general purposes, such as budgetary support and to finance or refinance assets under the government’s Sustainable Finance Framework.

“The robust demand for our first international bond offering in 2023 represents a strong vote of confidence by international investors. It is a testament to the Republic’s sound economic fundamentals and the resilience of our economy in the face of volatile global financial markets. We are pleased to see international investors’ recognition of the Philippines’ strong economic recovery, sound fiscal policies, and sensible socioeconomic agenda to promote sustainable  and inclusive economic growth,” said Finance Secretary Benjamin Diokno.

“The blockbuster reception and tight pricing achieved in all tranches of our latest offering, despite coming on the heels of curtain-raisers done by other big-name sovereigns, reaffirms the distinction of Philippine credit as a favored proposition even in times of uncertainties in the market landscape. It is both a reward for our masterful navigation of the pandemic crisis and a motivation to become a beacon for growth in a period of dimming global prospects,” said De Leon.

The Marcos administration first tapped the international debt market in October 2022 as it raised $2 billion from the issuance of a triple-tranche dollar-denominated bond sale.—AOL, GMA Integrated News