THE Philippines has successfully returned to the international capital markets for the first time in 2024 with its USD 2-B dual-tranche 10-year and 25-year sustainability global bonds issuance on May 7, 2024.
Finance Secretary Ralph G. Recto said the enthusiastic response from the global investor community for the offering underscores the strength of the Philippine economy and the strong vote of confidence international investors have in President Ferdinand R. Marcos, Jr.’s sound economic and fiscal policies.
The transaction attracted robust demand and strong order book momentum carried across markets, with interest from a diverse pool of high-quality global accounts.
Specifically, the new 10-year tranche was priced at T+80 bps, reflecting a tightening of 40 bps from initial price guidance. The new 25-year Sustainability tranche was priced at 5.60% at par (T+99.8 bps), 45 bps tighter than the initial price guidance.
The success of the offering illustrated the Philippines’ ability to navigate an uncertain policy rate environment and respond efficiently to capture conducive market conditions.
Proceeds of this issuance will be directed towards the overall welfare of all Filipinos—more infrastructure projects, improved social services, a better healthcare system, and quality education for them.
