The Philippines is preparing to offer dollar bonds in two tranches

THE PHILIPPINE government is preparing a benchmark-sized issuance of dollar bonds in two tranches, which will Ffirst global bond oFfor this year.

The country is considering issuing 10- and 25-year dollar bonds, according to a Reuters report.

Benchmark-sized issues are typically worth at least $500 million.

The 10-year bonds will initially be priced at US Treasuries plus 120 basis points (bps), while the 25-year sustainability bonds will be priced at a level of 6.05%, according to a Reuters term sheet.

Final pricing was expected overnight.

The notes will be senior unsecured notes and are registered with the U.S. Securities and Exchange Commission.

The proceeds from the issue will be used for the “general budget”. Ffinancing”, while the funds raised from the 25-year bonds will be earmarked for the “general budget”. Ffinancing and to Ffinancing or reFfinancing assets in line with the sustainability of the state Ffinancing framework,” FThis is reported by news provider IFR with a fixed income

Bank of America, Citigroup, HSBC, JPMorgan, Morgan Stanley and Standard Chartered were appointed as joint bookrunners.

The bonds have a settlement date of May 14.

Fitch Ratings, Moody’s Ratings and S&P Global Ratings rated the proposed bonds at ‘BBB’, ‘Baa2’ and ‘BBB+’ respectively, consistent with their ratings for the Philippines’ sovereign debt.

“Under the terms available to Moody’s, the bonds to be issued under the shelf program will constitute direct, unconditional and unsubordinated obligations of the Government of the Philippines,” Moody’s Ratings said in a statement on Tuesday.

The dollar-denominated issue would be from the government Ffirst global bond oFfor this year.

In 2023, the government raised $3 billion from its three-tranche dollar bond issuance in January, $1.26 billion from a retail dollar bond issuance in October, and $1 billion from its first Sukuk bond issuance in December.

This year, the government’s borrowing program is set at €2.57 trillion, of which 25% will come from foreign sources. — Luisa Maria Jacinta C. Jocson of Reuters