PH raises ₱68 billion from euro bond offer

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The Philippines has raised at least 1.2 billion euros (about ₱68 billion) from foreign investors in its latest offering of euro-denominated bonds intended to fund local projects and manage debts. (FILE PHOTO)

Metro Manila (CNN Philippines, January 22) — The Philippines has raised 1.2 billion euros (about ₱68 billion) from euro-denominated bonds offered to foreign investors, an official said Wednesday.

National Treasurer Rosalia de Leon said the euro debt papers, which mark the country's first offering in the global market this year, have been priced on Tuesday night. The government offered 600 million euros of notes with a three-year maturity, and another 600 million euros under a nine-year tenor.

The amount is bigger than the 750 million euros (about ₱42 billion) which the Philippines borrowed in May 2019. The bonds were given a "BBB" investment grade by credit rating agencies, a signal to investors that the Philippines has the capacity to repay its debts.

The three-year papers came with a zero coupon, which lets the Philippines borrow money without paying interest. Meanwhile, the nine-year IOUs fetched an annual interest rate of 0.75 percent, De Leon said in a text message to CNN Philippines.

The fundraising forms part of the national government's financing plans for 2020. This year, it plans to borrow ₱1.4 trillion, with one-fourth of the amount to be sourced abroad.

READ: Gov't debt rises to ₱7.71T in November

The Philippines borrows from both local and foreign sources to finance its spending plans and grow the economy. The Duterte administration has been actively tapping unexplored markets abroad as multiple funding sources.

Apart from the regular offering of short-term Treasury bills and long-term bonds, Treasury officials have also offered debt papers like the yuan-denominated panda bonds targeting Chinese investors, the yen or samurai bonds for Japanese players, and dollar bonds for all foreign markets.