MANILA, Philippines — The government aims to raise at least $500 million from the international debt market via the maiden issuance of sukuk bonds to further boost revenues.
The Bureau of the Treasury is targeting a benchmark-sized dollar denominated sukuk offering with a tenor of 5.5 years.
A benchmark-size offering generally means at least $500 million.
The notice listed Citigroup, Deutsche Bank, Dubai Islamic Bank, HSBC, MUFG, and Standard Chartered Bank as joint lead managers and joint bookrunners for the issuance.
The banks will arrange a series of fixed income investor calls in Asia, Europe, Middle East and the US.
The offering is expected to be rated Baa2 by Moody’s, BBB+ by S&P, and BBB by Fitch.
The sukuk offering is expected to be the last global bond sale for the Marcos administration this year.
This is also part of the target $5-billion issuance programmed for 2023.
The initial $3 billion via a triple-tranche global bond was already raised as early as January.
Another $1.26 billion from the first retail dollar bond (RDB) issuance was also secured last month.
The Bangko Sentral ng Pilipinas earlier said the sukuk issuance is a good complement for the promotion of Islamic banking in the country.
“Having a sukuk will send a strong signal that the Philippines is now ready to accept applicants and new players in the Islamic banking system,” the BSP said.
Shariah-compliant securities or sukuk bonds aim to diversify the country’s investor base.