Philippines readies $2 billion retail dollar bond issue in September — officials

July 10, 2023 - 9:38 AM
The Bureau of Treasury building in Manila, in 2014 file photo. BUSINESSWORLD

 The Philippine government plans to raise up to $2 billion to support its budget with an offering of retail dollar-denominated bonds in September, finance officials said.

“We’re doing all the marketing now. If markets are favorable … possibly in August or early September,” National Treasurer Rosalia de Leon said on the timing of the offering.

The offer will most likely be launched in September, Finance Secretary Benjamin Diokno told reporters on Friday during his weekly media briefing.

The tenor on the bonds has yet to be finalized, and the coupon will likely be set through an auction before the launch, officials said.

The offering will be the second of its kind for the Philippines, which in 2021 raised $1.6 billion from its first onshore retail dollar bond issue, consisting of five-year and 10-year tranches.

The Philippines, one of Asia’s most-active sovereign bond issuers and which traditionally sells retail treasury bonds denominated in the local peso currency, is offering the dollar bonds to Filipinos whether based abroad or in the country.

The dollar bonds will be available for a minimum placement of $200, with the coupon payment to be tax-free.

—Reporting by Enrico Dela Cruz; Editing by Sonali Paul