MANILA — The Philippines announced on Tuesday the launch of its first dollar bond issuance for the year, introducing dual-tranche benchmark-sized US dollar bonds. This strategic financial move aims to support the country’s budgetary needs through international markets.
According to Philippines News Agency, the pricing guidance for the 10-year note has been set at a rate of Treasuries plus 120 basis points. The 25-year sustainability tranche has been priced at 6.05 percent. The government, through former Finance Secretary Benjamin Diokno, disclosed earlier this year that it plans to raise up to USD 5 billion from global bond issuances to help meet this year’s substantial financing requirement of PHP 2.57 trillion. The Bureau of the Treasury has crafted a fundraising strategy that continues to favor domestic sources with a 75:25 borrowing mix.