Gov’t raises P107 billion from FXTNs

THE GOVERNMENT on Wednesday raised an initial P107.072 billion from its second offering of new fixed-rate Treasury notes (FXTNs) that target institutional investors.

- By Aaron Michael C. Sy Reporter

The amount raised for the 10-year papers was more than three times the initial P30-billion target as tenders reached P328.467 billion.

The new Treasury bonds (T-bonds) fetched a coupon rate of 5.925%, producing an average rate of 5.893%, results of the rate-setting auction posted on the Treasury’s website showed.

Accepted bid yields ranged from 5.75% to 5.928%.

The coupon rate was 5 basis points (bps) above the 5.875% seen for the same bond series but 0.9 bp lower than the 5.934% seen for the 10-year notes based on PHP Bloomberg Valuation Service Reference Rates data as of Feb. 18 published on the Philippine Dealing System’s website before the auction.

The public offer period as well as the exchange offer for the holders of bonds maturing over the next year will end on Feb. 20. The notes are scheduled to be issued on Feb. 23.