{"id":147829,"date":"2018-01-21T22:14:45","date_gmt":"2018-01-22T03:14:45","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=147829"},"modified":"2018-01-21T22:14:45","modified_gmt":"2018-01-22T03:14:45","slug":"ph-successfully-sells-usd2-b-10-yr-global-bond-at-3-coupon-rate","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2018\/01\/21\/ph-successfully-sells-usd2-b-10-yr-global-bond-at-3-coupon-rate\/","title":{"rendered":"PH successfully sells USD2-B 10-yr global bond at 3% coupon rate"},"content":{"rendered":"
\"The<\/a>
Bulk of the issuance, amounting to USD1.24 billion, was allocated to investors (Shutterstock photo)<\/figcaption><\/figure>\n

MANILA – – The Duterte administration\u2019s Build, Build, Build program got another boost after the government successfully sold USD2-billion worth of 10-year US dollar-denominated bond Friday morning.<\/p>\n

The Department of Finance (DOF) said the latest 10-year Republic of the Philippine (ROP) issuance, sold after the first 10-year global bond issuance in 2014, has a coupon rate of three percent, lower than the initial pricing guidance of 3.300 percent and has a final spread of 37.8 basis points above US Treasuries.<\/p>\n

Bulk of the issuance, amounting to USD1.25 billion, was allocated to investors who submitted 14 series of global bonds maturing between 2019-37 previously issued by the government at higher yields while the balance of USD750 million is the new money component.<\/p>\n

This latest issuance was given investment grade ratings by Moody\u2019s Investors Service, Fitch Ratings, and Standard & Poor\u2019s in line with their ratings on the economy.<\/p>\n

The government tapped Citigroup and Standard Chartered Bank as dealer managers for the Switch exercise and as joint global coordinators for the new bond issuance. The duo are joined by Credit Suisse, Deutsche Bank, Morgan Stanley, and UBS as joint deal managers and book runners for the bond issuance.<\/p>\n

Finance Secretary Carlos Dominguez III, in a statement, said \u201cthe strong support that this 10-year global bond float has received in the international capital markets is a testament to the deepening investor confidence in the country’s newfound status under the Duterte presidency as one of the world’s fastest-growing economies.\u201d<\/p>\n

\u201cThe capital raised from this bond float plus the additional revenue take from the newly-implemented TRAIN Law will help bankroll President Rodrigo Duterte\u2019s \u2018Build, Build, Build\u2019 program to modernize the country\u2019s infrastructure, sharpen its global competitiveness and sustain rapid\u2014and inclusive\u2014growth as well as financial inclusion for all Filipinos,\u201d he said.<\/p>\n

The government plans to borrow about PHP888.227 billion this year, with the overseas borrowing set at around PHP176.269 billion.<\/p>\n

Aside from the US-dollar denominated bond, the government also plans to issue yen-denominated Samurai bond and renminbi-denominated Panda bond.<\/p>\n

In January 2017, the Duterte administration issued its first\u00a0 25-year dollar-denominated ROP bond amounting to USD2 billion. This has a yield of 3.7 percent, lower than the 3.95 percent initial guidance.<\/p>\n

USD500 million of the proceeds of last year\u2019s issuance was used to augment government funds for its programs while the bulk, at USD1.5 billion, was used to pay investors who submitted 14 series of bonds maturing between 2019 and 2037 for swap.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA – – The Duterte administration\u2019s Build, Build, Build program got another boost after the government successfully sold USD2-billion worth …<\/p>\n","protected":false},"author":33,"featured_media":41491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[13825,11506,7050,44183,44182,2444,44184],"class_list":["post-147829","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-carlos-dominguez-iii","tag-department-of-finance","tag-fitch-ratings","tag-moodys-investor-service","tag-republic-of-the-philippine-insurance","tag-rodrigo-duterte","tag-standard-poor","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/147829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=147829"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/147829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/41491"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=147829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=147829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=147829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}