Daily TribuneBTr said proceeds of the last two US and Euro bonds will be used for the government’s sustainability projects under the Philippine Republic’s Sustainable Finance Framework.
Bureau of the Treasury (BTr)
The Bureau of the Treasury (BTr) successfully priced its new US and Euro bonds offering amounting to $3.29 billion.
In a statement on Friday, the BTr said the Global Fixed Rate Bonds consist of 10-year and 25-year US bonds worth $2.25 billion and 7-year Euro bonds worth $1 billion.
The BTr said proceeds of the last two US and Euro bonds will be used for the government’s sustainability projects under the Philippine Republic’s Sustainable Finance Framework.
This was the first time the national government issued a Euro-denominated sustainability bond.
Previously, the Philippines issued a $2.5 billion triple-tranche US bond in August 2024, $2-billion dual-tranche US bond in May 2024, and $1- billion Sukuk or Islamic bond in November 2023.
Following its announcement of the new triple-tranche global bonds on 23 January, the BTr said it secured cost-efficient rates or lower than the initial price guidance.
The 10-year US bond was priced 90 basis points higher than the comparable US bond, which was 30 bps tighter versus IPG.
The 25-year US sustainability bond was priced at 5.9 percent or a 20 bps tightening from IPG.
The Euro sustainability bond was priced 125 bps higher than the mid-swaps rate, reflecting a 35 bps tightening from IPG.
The global bonds are expected to receive investment grade of Baa2 from Moody’s, BBB+ from Standard & Poor’s, and BBB from Fitch. The transaction is expected to settle on 4 February.
“The success of this offering underscores our ability to seize favorable market conditions efficiently. This is a reflection of the trust and confidence of investors in the leadership and policies of the Marcos Jr. administration, as recognized by the market and further reinforced by the country’s improving credit rating trajectory,” Finance Secretary Ralph Recto said.
HSBC, Standard Chartered Bank and UBS are acting as Joint Sustainability Structuring Banks. Citigroup, Goldman Sachs, HSBC (B&D), J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as Joint Lead Managers and Bookrunners for the transaction.
