Marcos admin borrows ₱117B in global bond market debut

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Metro Manila (CNN Philippines, October 6) — The administration of President Ferdinand “Bongbong” Marcos Jr. borrowed $2 billion (about ₱117 billion) from international investors in its first-ever global bond float, the Bureau of the Treasury (BTr) confirmed Thursday.

The BTr said in a statement that the multi-tranche offering consisted of Securities and Exchange Commission-registered fixed rate global bonds which had maturities of five, 10.5, and 25 years. The transaction is expected to be settled on Oct. 13.

The 5- and 10.5-year bonds fetched coupon rates of 5.17% and 5.609%, respectively. They were also priced 35 basis points tighter than the US Treasury’s initial pricing of +120 bp and +185 bp.

The 25-year bonds, which were issued under the country’s Sustainable Finance Framework, had a yearly 5.95% interest rate. It was also priced at 6.100%, 45 bps tighter than the US Treasury’s initial price guidance.

The bond float secured ratings of Baa2 from Moody’s Investors Service, BBB+ from S&P Global Ratings, and BBB from Fitch Ratings.

The BTr said proceeds from the 5- and 10.5-year bonds will be used for “general purposes, including budgetary support.”

“The proceeds from the 25-year Global Bonds will be applied to finance or refinance assets under the Republic’s Sustainable Finance Framework,” added the agency.

Finance Secretary Benjamin Diokno said the “strong” demand for the Marcos administration’s first international bond offering reflects investor confidence in his government and its six-year plan for a more inclusive, resilient, and prosperous economy.

“Just as we were able to deftly capture a good execution window amid a daunting volatile market environment to attain our financing objectives at favorable cost, we too shall rise above the present difficulties through our eight-point economic blueprint toward differentiating ourselves as the prime destination of choice among quality-conscious investor,” said National Treasurer Rosalia de Leon.

The country’s foreign borrowings slightly rose to ₱4.08 trillion as of end-August. The total debt stock has likewise surpassed the ₱13 trillion mark.