The government has started its second external issuance of 2024, seeking to raise at least USD500 million from a triple-tranche fixed-rate US dollar global bond with maturities of 5.5 years, 10.5 years, and 25 years, primarily for budget support.
The bond issue marks the government’s sixth G3 ESG bond offering, with a portion of the 25-year bond proceeds allocated to assets under its Sustainable Finance Framework.
The triple-tranche offer follows the USD2 billion dual-tranche bond offering in May 2024, as well as a USD1 billion 5.5-year Sukuk in November 2023, and a USD3 billion triple-tranche bond offering in January 2023.
Finance Secretary Ralph G. Recto said the country’s recent credit rating upgrade and affirmation are powerful endorsements of the country’s robust macroeconomic fundamentals and sound policy environment.
“These endorsements come at a very opportune time for this issuance, strengthening our position as one of the most attractive and financially secure emerging markets. We are confident that this global offering will receive a strong and enthusiastic reception,” he added.
The proceeds from the 5.5-year, 10.5-year, and 25-year global bonds will be used to support general budget financing requirements.
The budget deficit in the seven months to July stood at P642.8 billion, less than half the P1.363 trillion deficit ceiling for 2024.
The transaction is being managed by a consortium of joint bookrunners including BNP Paribas, Citigroup, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank, and UBS. HSBC, Standard Chartered Bank, and UBS are also leading the joint sustainability structuring banks for this issuance.
