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The government returned to the international bond market this year with its second global bond offering, from which it intends to raise more funds to support its budget.
Based on initial government guidance, the benchmark size dollar bonds are double-tranche with terms of 10.5 and 25 years. The 10.5-year bonds will mature on June 10, 2031 and the 25-year bonds on December 10, 2045.
Long-term bonds would yield around 100 basis points above the benchmark 10-year US Treasury. The proceeds from the offering will be used for general purposes, including budget support for the government.
BY J. GERARD SEGUIA
National Treasurer Rosalía de León declined to provide the actual size of the bond offering.
The bond offering secured investment grade ratings from S&P Global Ratings, Moody’s Investors Service and Fitch Ratings.
S&P assigned a long-term foreign currency rating of “BBB +” to the issue; Moody’s, a senior unsecured rating of “Baa2”; and Fitch, “BBB”.
“Moody’s also assigned a Baa2 provisional foreign currency senior unsecured shelf rating (P) to the government shelf program that was recently registered with the US Securities and Exchange Commission,” Moody’s said.
“At the same time, the Baa2 foreign currency senior unsecured shelf rating (P) was withdrawn on the previously pending shelf record,” it added.
The offering comes after the government raised $ 2.35 billion (about P119.07 billion) in April from its first global double-tranche bond offering.
This issuance came on April 27 when the government capitalized on a short and favorable market window amid broader volatility stemming from concerns about the 2019 coronavirus disease pandemic.
These dollar-denominated notes received a rating of “BBB +” from S&P, “Baa2” from Moody’s; and “BBB” from Fitch.
The April issue follows the country’s € 1.2 billion global double-tranche bond offering in January, and the $ 1.5 billion and € 750 million global bond offerings in 2019.
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