Gov't borrows $2.5 B to fund budget

The Philippines managed to secure $2.5 billion from the international debt market through a triple-tranche global bond issuance aimed at financing the country's budgetary requirements.

- LOUISE MAUREEN SIMEON

The government raised $2 billion (P140.7 billion) in this year's second foray into offshore commercial borrowing through the issuance of the triple-tranche dollar and sustainability bonds.

The government also raised $500 million via its 5.5-year tranche with a 4.375 percent yield, while it borrowed $1.1 billion for its 10.5-year tenor with a coupon of 4.75 percent.

Its 25-year sustainability bond, on the other hand, fetched an average rate of 5.175 percent and raised another $900 million. This is the country's sixth sustainability bond offering.

The Marcos administration last issued dollar bonds in May, raising $2 billion amid elevated global interest rates.

At the time, coupon rates were higher at 5.25 percent for the 10-year tenor and 5.6 percent for the 25-year offer.