Tue. May 11th, 2021

The Philippines is again eyeing to issue euro-denominated benchmark bonds, a few months after it issued US dollar-denominated debt papers in December 2020. 

(Photo Courtesy: Samachar Central)

A report from the US Securities and Exchange Commission (SEC) showed that the Philippines has appointed BNP PARIBAS, Credit Suisse, Goldman Sachs, J.P. Morgan, Nomura, and Standard Chartered Bank as lead managers and joint bookrunners for the proposed offering.

It said a series of fixed income investors meetings are set in Asia, Europe, and the US starting April 19, 2021. 

“A proposed four-year and/or 12-year and/or 20-year euro-denominated US SEC-registered senior unsecured benchmark bond offering may follow, subject to market conditions,” it added.

The planned offering is projected to be rated investment grade by Moody’s Investors Service, Baa2; S&P Global Ratings, BBB+; and Fitch Ratings, BBB. 

These ratings are the same that debt raters have for the Philippine economy. 

Last December, the country raised $2.75 billion (about P132 billion) from the issuance of 10- and 25-year Republic of the Philippines (ROP) bonds, proceeds of which will be used to finance the various government programs. Authorities said such issuance is a success, especially since it fetched new record-low interest rates, with the coupon for the shorter-dated paper at 1.648 percent and 25-years at 2.65 percent per year. SOVEREIGNPH

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