Philippine gov’t raises $2B in its first global debt sale this year

MANILA — The Philippine government raised $2 billion in fresh borrowings through Wednesday’s sale of dual-tranche US dollar bonds, the Marcos administration’s first offshore fundraising activity this year.

The Philippines raised $1 billion each from the 10-year debt securities and 25-year sustainability notes, according to the final term sheets released by Bank of America, one of the bookrunners that the government commissioned for the issuance.

The bonds due in 2034 fetched a coupon rate of 5.25 percent, while the notes maturing in 2049 were priced at a higher yield of 5.60 percent.

READ: PH returns to global debt market

Finance Secretary Ralph Recto said the $2-billion debt offer is part of the Marcos government’s broader plan to raise $5 billion in financing from markets overseas this year.

Proceeds from the sale of 10-year debt securities will be used for “general budget financing” while the amount to be raised via 25-year bonds will be used for the same purposes but also for refinancing assets “in line with the Republic’s sustainable finance framework.”