MANILA, Philippines — The Philippine government borrowed $2.25 billion from foreign investors following its first triple-tranche global bond sale that included a maiden green bond offer.
In a statement on Tuesday, the Bureau of the Treasury said the government sold 5-year, 10.5-year and 25-year global bonds. This marks the first time the Philippine government made a three-tranche US dollar bond offering.
Proceeds from the 5-year and 10.5-year global bonds will be used for the national government's budgetary needs. Debts raised from the 25-year green bonds, a first for the country, will be used for spending items that fall within the government's Sustainable Finance Framework, the Treasury said.
Finance Secretary Carlos Dominguez III said there was strong demand for all three tranches, with the green bonds capturing more investors than the other securities. Interest charged for the bonds, as gauged by a coupon rate, stood at 3.229%, 3.556% and 4.200% for the 5-year, 10.5-year and 25-year debt papers.
The Treasury said it was able to proceed with the sale after investor sentiment improved despite the US Fed's rate hike earlier this month and Russia's invasion of neighboring Ukraine.
“Being the first and largest offshore Southeast Asia sovereign offering in 2022, the Republic’s transaction has reopened the Asian bond markets for long-dated offerings and cements the Republic’s position as the leading capital market participant in Asia," National Treasurer Rosalia de Leon said.
The latest fundraising activity was preceded by several bond sales last year: the $3 billion dual tranche global bond sale in June, the €2.1 billion triple tranche global bond offer in April and ¥55 billion Samurai bond offerings in March.
The government borrows from local and foreign creditors to bridge its budget deficit.