PH raises $860 M from Samurai bonds

Published August 2, 2019, 12:00 AM

by manilabulletin_admin

By Chino S. Leyco

The administration successfully issued its yen-denominated bonds yesterday raising around P44 billion to help fund the government’s budgetary requirements for this year.

BTr-Logo-New copy

The Philippine government raised 92 billion yen, roughly $860 million, from a four-tenor Samurai bond sale, the Bureau of the Treasury reported on Friday.

Based on the Treasury report, the government raised 30.4 billion yen from the sale of three-year notes at 0.18 percent, as well as 21 billion yen from five-year IOUs at 0.28 percent.

Likewise, the government sold 17.9 billion through the sale of seven-year bond at a rate of 0.43 percent and finally, 22.7 billion yen at 0.59 percent for 10-year debt papers.

The settlement for this latest borrowing exercise is on August 15 this year.

Manila’s latest borrowing from the Japanese debt market was smaller than the 154.2 billion yen it issued a year ago, but the coupons were lower and the spreads were tighter.

Daiwa, Mitsubishi UFJ Morgan Stanley, Mizuho, Nomura and SMBC Nikko were joint lead managers on the deal.

Debt-way her S&P Global Ratings assigned its ‘BBB+’ long-term foreign currency rating to Manila’s benchmark-sized Japanese yen-denominated senior unsecured notes issued.

Last week, National Treasurer Rosalia V. de Leon said the national government may also likely tap the panda, euro and samurai debt markets next year after the Duterte administration programmed its gross borrowings at a record P1.4 trillion in 2020.