Philippines launches benchmark-sized global bond offer —term sheet

January 10, 2023 - 1:02 PM
File photo of foreign exchange. (The STAR/KJ Rosales)

The Philippines is returning to the global bond market with a benchmark-sized U.S. dollar bond offer with tenors of 5.5, 10.5 and 25 years, a term sheet showed on Monday.

The dollar bond offer follows the Southeast Asian country’s $2 billion three-tranche global bond deal in early October, the first offshore debt issue by the administration of President Ferdinand Marcos Jr.

Proceeds will be used for budget financing, with the 25-year tranche comprising green or sustainability bonds.

The Philippines has set the initial price guidance at Treasuries plus 155 basis points (bps) for the 5.5-year tranche, plus 195 bps for the 10.5-year tranche, and at the 5.95% area for a 25-year sustainability bond, fixed income news provider IFR reported.

BofA Securities, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley, Standard Chartered Bank and UBS were tapped as joint lead managers and joint bookrunners.

—Reporting by Karen Lema and Enrico Dela Cruz; Editing by Ed Davies