Philippines launches 3-year retail bond offer, sets coupon at 4.375 pct


Posted at Jan 28 2020 08:47 PM

MANILA - The Philippine government on Tuesday launched an offer to sell and exchange peso-denominated retail Treasury bonds due in 2023 for notes maturing in April this year, setting the coupon rate at 4.375 percent via an auction.

The Bureau of the Treasury fully awarded its auction offer of 134 billion pesos ($2.63 billion) of the peso-denominated bonds at an average rate of 4.297 percent, against tenders totaling 149.83 billion pesos.

The debt swap opportunity for holders of existing 4.25 percent retail Treasury bonds due on April 11 is available until Feb. 6, while the offer to small investors also runs in the same period.

Bond issuance is set for Feb. 11, the BTr said.

The bond exchange offer lengthens the government's debt maturity, helping it manage refinancing risks.

The government last issued RTBs in March 2019, raising around 236 billion pesos via a public offer of five-year notes for budgetary support. 

The Philippines, one of Asia's fast-growing economies, has programmed a record 4.1 trillion peso national budget for this year, with a sizeable portion allotted for an ongoing infrastructure overhaul.