In a statement, the Department of Finance said the issuance included 5.5-, 10.5-, and 25-year fixed-rate global bonds, with the longest tranche aligned with the country’s Sustainable Finance Framework, marking its sixth environmental, social, and governance bond offering.
The 5.5-year bond was priced at a yield of 4.375 percent, while the 10.5-year bond came in at 4.75 percent, both tightening significantly from initial price guidance.
The 25-year sustainability bond yielded 5.175 percent, also priced tighter than anticipated.
This favorable pricing highlights investor confidence in the Philippines' economic stability and creditworthiness, the Finance department said.
Finance Secretary Ralph Recto expressed satisfaction with the strong investor response, noting, “compared to our regional peers, the Philippines’ issuance achieved among the best pricing in all of our tranches this year. This is a resounding vote of confidence in our country’s solid credit profile.”
National Treasurer Sharon Almanza highlighted the transaction’s strategic timing amid favorable market conditions and dovish US Federal Reserve signals, allowing the government to minimize interest payments.
The funds from the 5.5-year and 10.5-year bonds will be used for general budget financing, while the 25-year bond will also support projects under the Sustainable Finance Framework.
The bonds are expected to be rated Baa2 by Moody’s, BBB+ by Standard & Poor’s, and BBB by Fitch, with the transaction set to settle on Sept. 5, 2024.
