Updated
Updated · Bloomberg · Jun 16
Philippines Sells 5.5-Year, 10-Year and 2051 Bonds as Lower Costs Open Funding Window
Updated
Updated · Bloomberg · Jun 16

Philippines Sells 5.5-Year, 10-Year and 2051 Bonds as Lower Costs Open Funding Window

2 articles · Updated · Bloomberg · Jun 16

Summary

  • The Philippines returned to the international bond market for a second time this year, launching 5.5-year and 10-year notes and reopening its January 2051 bond to fund state spending.
  • Initial price guidance was about 85 basis points over Treasuries for the 5.5-year tranche and 125 basis points for the 10-year paper, while the 25-year reopening carried an indicative yield near 6.1%.
  • The sale was timed to falling borrowing costs, with optimism over a potential US-Iran agreement improving market conditions for sovereign issuers.
  • The bonds are expected to be priced later Tuesday, extending Manila's use of offshore markets to secure financing as conditions ease.

Insights

With the US-Iran deal on a 60-day clock, is the Philippines' new debt a smart move or a high-stakes gamble?
Will billions in foreign debt solve the Philippines' domestic crises or just create a future financial burden for its citizens?