Philippines prices US$2.5 billion triple tranche of global bonds

THE Philippines has priced its US$2.5 billion triple tranche of global bonds at yields tighter than initial guidance, the finance ministry said on Thursday (Aug 29).

The new 5.5-year tranche has a yield of 4.375 per cent, the 10.5-year bonds carried a yield of 4.750 per cent and the new 25-year Sustainability tranche was priced at 5.175 per cent, the ministry said in a statement.

Pricing was 35 basis points tighter than initial guidance on the 5.5 year bonds, 30 basis points tighter on the 10.5 years, and 32.5 basis points tighter on the 25-year issue.

Finance Secretary Ralph Recto said the government took advantage of moderating benchmark yields driven by softer inflation and an increasingly dovish US Federal Reserve.

“We are raising funds at very affordable costs to support programmes and projects that will boost economic growth, create quality jobs, increase incomes, and reduce poverty,” he said.

It was the second US dollar benchmark bond sale this year for the Philippines, one of Asia’s most-active sovereign bond issuers to help finance its budget deficit.

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In May, the South-east Asian country raised US$2 billion through 10-year bonds and 25-year sustainability tranche bonds. REUTERS