PHL raises ₧29.1 billion via offer of green Samurai bonds

THE Philippine government raised ¥70.1 billion (around P29.1 billion or $550 million) through its issuance of four-tranche green Samurai bonds.

The government successfully priced its green Samurai bond issuance of 5-year, 7-year, 10-year, and 20 -year tenors.

This marks the second time that the government tapped the offshore bond market this year and issued green bonds.

Last month, the government borrowed a total of $2.25 billion (around P118 billion) by issuing triple-tranche dollar-denominated global bonds, including its maiden green bonds.

So far this year, the government raised a total of $1.55 billion for its green bond issuances so far to the offshore debt market.

For this year, the government has set a P2.2-trillion borrowing program, of which $7 billion (around P366.8 billion) is eyed to be raised through foreign commercial borrowings through sovereign bonds.

With the recent issuances of dollar bonds and Samurai bonds, the government’s foreign commercial borrowings have already reached $2.8 billion.

Sought on the government’s next offshore bond issuance, National Treasurer Rosalia V. De Leon told reporters they have to see first how the second half of the year will pan out in line with the next administration’s fiscal program.

“Will have to also see how second half plays out with next admin fiscal program,” De Leon said.

However, she assured the public that the government currently has  a “healthy cash buffer” to finance its spending requirements.

In March last year, the Philippine government raised ¥55 billion ($500 million or about P24.2 billion) in its sale of 3-year zero-coupon Samurai bonds, marking its successful return to the said market after more than a year of hiatus.

This was also the first-ever zero-coupon bond transaction issued in the Samurai bond market, according to the Bureau of the Treasury.

In 2020, the Philippine government shelved its plans to issue Samurai bonds and renminbi-denominated Panda bonds as the Bangko Sentral ng Pilipinas approved a P540-billion advance credit to help the government cover a budget deficit that swelled on the impact of the Covid-19 pandemic.

As of end-February this year, the national government’s outstanding debt rose to another record high of P12.09 trillion due to currency fluctuations and net financing from both domestic and foreign sources.

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