PH raises $2.35 billion in global bond float

enablePagination: false
maxItemsPerPage: 10
maxPaginationLinks: 10

Metro Manila (CNN Philippines, April 28) - The Philippines has raised $2.35 billion, or about ₱119 billion, from US dollar bonds offered to foreign investors, to help finance the government's national budget and COVID-19 response.

The new 10-year Global Bonds were sold at 2.457 percent and the 25-year bonds at 2.95 percent.

National Treasurer Rosalia de Leon said that these were the country's lowest ever coupon rates for a 10-year and 25-year benchmark issuance.

"This makes the Philippines, at least for the time being, a diamond in the sovereign issuance space," de Leon said in a statement Tuesday.

The transaction is expected to settle on May 5, 2020, the Bureau of the Treasury said. 

The Philippines also raised 1.2 billion euros, or roughly ₱68 billion, from euro-denominated bonds offered to foreign investors in January this year.

READ: PH raises ₱68 billion from euro bond offer

Finance Secretary Carlos Dominguez III said such support from the investor community is a result of the country's strong macroeconomic fundamentals brought about by the administration's reform agenda.

“The strong demand for this bond issue demonstrates the resiliency of investor interest in the Philippine economy despite the global economic fallout from the COVID-19 pandemic," Dominguez said in a statement.

“The success of this bond float despite the COVID-induced volatility is also reflective of the global recognition of, and support for, the Duterte administration's four-pillar strategy to mitigate the impact of the global health crisis,” he added.

The Philippines borrows from both local and foreign sources to finance its spending plans and grow the economy.