The Bureau of the Treasury said it priced triple-tranche US dollar 10-year, 25-year and euro 7-year global bonds totaling $2.25 billion and 1 billion euros.
The 25-year US dollar and 7-year euro global bonds will be issued under the Republic’s Sustainable Finance Framework. This marks the government’s first euro-denominated sustainability bond and its return to euro bond markets since April 2021.
The offering follows a $2.5 billion triple-tranche bond offering in August 2024, a $2 billion dual-tranche bond offering in May and a $1 billion 5.5-year sukuk in November 2023.
The 10-year US dollar bond was priced at T+90 basis points, tightening 30 basis points from its initial price guidance of T+120 basis points. The 25-year US dollar sustainability bond was set at 5.9 percent, down from the earlier estimate of around 6.1 percent.
“Despite market volatility, the offering’s success demonstrated the Republic’s ability to efficiently capture conducive market conditions and launch a jumbo dual-currency transaction,” the BTr said.
“The transaction attracted robust demand and strong order book momentum across U.S. dollar and euro markets, with interest from a diverse pool of high-quality global accounts, showcasing investors’ confidence in the Republic’s credit profile and long-term outlook,” it said.
“With a constructive market developing over the week, we see an opportune window for the Republic to re-enter the capital markets,” said National Treasurer Sharon Almanza.
“Our goal is to capitalize on the current market momentum to secure the most efficient cost dynamics ahead of potential uncertainties in the near future. We look forward to the continued support of our valued investors,” said Almanza.
Finance Secretary Ralph Recto said the offering’s success underscores the government’s ability to seize favorable market conditions efficiently.
“This is a reflection of the trust and confidence of investors in the leadership and policies of the Marcos Jr. administration, as recognized by the market and further reinforced by the country’s improving credit rating trajectory,” Recto said.
The government will use proceeds from the 10-year global bond for general budget financing. Proceeds from the 25-year U.S. dollar and 7-year euro global bonds will be used for general budget financing and to finance/refinance its Sustainable Finance Framework.
HSBC, Standard Chartered Bank and UBS are the joint sustainability structuring banks. Citigroup, Goldman Sachs, HSBC (B&D), J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are the joint lead managers and bookrunners.
