Philippines raises US$1.3 billion from retail US dollar bond sale

THE Philippines raised US$1.3 billion from a sale of US dollar bonds targeted at individuals as the government seeks to diversify its sources of funding.

“The good thing is we saw a lot of retail demand coming in from online platforms,” Deputy Treasurer Erwin Sta Ana said in Manila on Friday (Oct 6). The bonds due in 2029 have a coupon of 5.75 per cent.

The South-east Asian nation has raised a significant portion of its funding over the past two decades by tapping retail investors, but issuances were mostly in pesos. The move comes as emerging-market borrowers face higher borrowing costs, with the Philippine 10-year peso bond yield up about 80 basis points since mid-May.

The Philippines plans to borrow 2.2 trillion pesos (S$53 billion) from domestic and international sources this year. The government sold its maiden retail US dollar bonds in October 2021, when it raised US$1.6 billion.

The Philippines plans to offer US$1 billion of sukuk bonds in late November and is planning a euro bond sale next year. The government has also said it is looking to return to the international bond market this year with a US$1 billion offering. BLOOMBERG