Philippines to borrow at least $500M via dollar bonds offering

The Marcos administration is debuting in the foreign debt market through an offering of at least $500 million in 5-year, 10.5-year and 25-year US dollar bonds.

The offering is of senior unsecured, fixed rate bond registered with the United States Securities and Exchange Commission. Respectively, thethree bonds will mature in October 2027, April 2033 and October 2047.

Proceeds from all three bonds are intended for “general budget financing.”

Additionally, funds from the 25-year bonds are also meant to finance or refinance assets based on the national government’s sustainable finance framework.

The government earlier this year launched the Philippine Sustainable Finance Roadmap, which lays out an action plan to mobilize financing for climate action initiatives, facilitate investments in climate-resilient public infrastructure, and develop projects that promote sustainable development in the country.

As of the end of August, the national government’s debt stock was pegged at a record-high P13.02 trillion. Of this total, 31 percent or P4.08 trillion is owed to foreign lenders.

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