Philippines launches benchmark-sized dollar bond offer

Reuters

Posted at Jun 28 2021 08:41 PM

MANILA - The Philippines launched on Monday a benchmark-sized US dollar bond offering, seeking to raise more funds for budgetary support in a two-tranche issue following its yen and euro denominated bond sales earlier this year.

The government is offering dollar bonds with tenors of 10.5 years and 25 years, with the initial price guidance set around the level of Treasuries plus 90 basis points and 3.55 percent, respectively, documents showed.

Bank of China, Deutsche Bank, Goldman Sachs, Morgan Stanley, MUFG, Standard Chartered and UBS have been tapped as joint bookrunners.

The Philippines, one of Asia's most active sovereign bond issuers, plans to raise as much as $5.5 billion from commercial debt markets this year to plug a budget deficit that covers the government's pandemic response measures, including vaccine purchases and flagship infrastructure projects.

It has so far raised $500 million from a yen-denominated Samurai bond issue and sold $2.5 billion worth of euro-denominated notes. 

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