Philippines raised $500M from domestic dollar bond offering
December 3, 2012 Business World Online
28 Nov 2012 - Investors swamped yesterday’s onshore dollar bond issuance, allowing the government to raise $500 million as planned.
The bonds due in 2023 fetched a 2.75% coupon rate, six-and-a-half basis points higher than Republic of the Philippines bonds due in 2021 and 2024 sold offshore.
Bids for the securities ranged from 2-2.8%. Tenders amounted to $1.742 billion, more than three times the amount sought.
The debt papers will be listed in the Philippine Dealing and Exchange Corp. on Dec. 4 to allow for secondary market trading.
Yesterday’s capital-raising activity was part of efforts to tap the domestic market as an alternative funding source, National Treasurer Rosalia V. de Leon told reporters.
"The intention is to buy more dollars domestically and get our foreign exchange requirements here to reduce our dependence on foreign borrowing," she said.
Next year, Ms. de Leon said, the government’s commercial borrowing will be around $1.5-2 billion excluding official development assistance, lower than the $2.25 billion programmed for 2012.
Company — Philippines
Full nameRepublic of the Philippines