PH returns to global debt mart

The Marcos administration will make its curtain-raiser global debt offering this year with a $2-billion bond issue slated this month.

The debt notes are payable in 10 and 25 years, according to a Bloomberg report on Tuesday carrying an announcement from the Bureau of the Treasury (BTr).

Finance Secretary Ralph Recto said the $2-billion debt offer was part of the Marcos government’s broader plan to raise $5 billion in financing from markets offshore this year.

The proposed US dollar bond float was given an investment grade rating by Fitch Ratings, S&P Global Ratings and Moody’s Investors Service—matching the credit rating assigned to the Philippine government by the so-called “Big Three” debt watchers.

The offer would come at a time stubbornly high inflation is creating a high interest rate environment globally. According to the Bloomberg report, the bonds due in 2034 were targeted to be priced at a spread of 120 basis points over benchmark securities, and the longer-dated notes maturing in 2049 at a spread of 6.05 percent.

Proceeds from the sale of 10-year debt securities will be used for “general budget financing” while the amount to be raised via 25-year bonds will be used for the same purposes but also for refinancing assets. — INQ