Philippines set to launch maiden onshore dollar bond issue

September 15, 2021 - 2:38 PM
U.S. One dollar banknotes are seen in front of displayed stock graph in this illustration taken, February 8, 2021. (Reuters/Dado Ruvic/Illustration/File Photo)

MANILA — The Philippine government is set to launch on Wednesday its first onshore issue of retail dollar bonds, aiming to raise a minimum of $400 million from the domestic market in an offer that runs until Oct. 1, the Bureau of the Treasury said.

The offer consists of five-year and 10-year bonds, which will be priced later in the day via an auction, it said.

The launch follows a series of promotional streamed briefings in recent weeks targeted at Filipinos living overseas, who remit home more than $2 billion in income every month.

The government will offer the dollar bond at a minimum denomination of $300 and multiples of $100 thereafter, making it more attractive for retail investors compared to the traditional offshore dollar bonds available at a minimum size of $200,000.

The government traditionally offers retail treasury bonds denominated in the local currency, with the most recent in March, when it sold 463.3 billion pesos ($9.3 billion) of three-year bonds. ($1 = 49.8750 Philippines pesos) —Reporting by Enrico Dela Cruz Editing by Ed Davies