PHL set to issue $500-M benchmark US dollar bonds

WASHINGTON/MANILA – The Philippines is set to issue benchmark volume, or around US$500 million, multi-tenor US dollar bonds in the international capital market. 

In an announcement, the US Securities and Exchange Commission (SEC) said the Republic of the Philippines (ROP) dollar bond issuance involves 10.5-year and 25-year tenors. Initial guidance for the paper is a rate based on the same tenor US Treasuries plus 90 basis points or at around 3.550 percent. 

The debt papers have fixed rates.

 The Philippines currently enjoys investment-grade ratings from the three major credit raters and these planned issuances are expected to carry the same figures. 

To date, Moody’s Investors Service’s rating on the country is Baa2 while it is BBB+ for S&P Global Ratings and BBB for Fitch Ratings. All these ratings have a Stable outlook. 

National Treasurer Rosalia de Leon said that proceeds of the debt issuance will be used for “general budget support.” The government has a US$7-billion programmed commercial borrowing for this year and so far, it has issued a total of US$3 billion worth of Eurobond and Yen-denominated Samurai bonds. 

S& Global Ratings, meanwhile, gave the country’s planned benchmark-sized senior unsecured US dollar bond issuance a ‘BBB+’ rating.In a report, the debt rater said the rating is similar with that of the sovereign outlook on which is Stable.

“The notes represent direct, general, unconditional, unsecured, and unsubordinated obligations of the sovereign, and rank equally with the sovereign’s other unsecured and unsubordinated debt obligations,” it added.

The US Securities and Exchange Commission (SEC) said the Republic of the Philippines (ROP) dollar bond issuance involves 10.5-year and 25-year tenors.

Initial guidance for the paper is a rate based on the same tenor US Treasuries plus 90 basis points or at around 3.550 percent. The debt papers have fixed rates.

Moody’s Investors Service’s current rating on the country is Baa2 while it is BBB for Fitch Ratings. Both ratings have Stable outlook

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