Philippines raises $4.1B in bond sale on rate cut bets
The Philippines raised 235 billion pesos ($4.1 billion) in fresh funds through a bond sale that attracted strong investor demand, as buyers moved to lock in higher yields ahead of a potential interest rate cut by the central bank.
The Bureau of the Treasury said Thursday that the offer period — initially scheduled to run until Friday — was shortened after the government reached its funding target in a sale aimed at institutional investors, News.Az reports, citing Bloomberg.
Despite the early closure for new subscriptions, investors will still be allowed to exchange existing debt for the newly issued securities until Friday, according to the statement posted on the bureau’s website.
With the Philippine economy expanding at its slowest in 14 years outside of the pandemic, most analysts expect the Bangko Sentral ng Pilipinas to deliver a sixth consecutive rate cut later today. Philippine officials are already taking advantage of falling borrowing costs with benchmark yields down about 50 basis points from a peak in June.
In April, the government raised 300 billion pesos from its maiden offering of such notes. That offering didn’t include a debt exchange component.
The government plans to sell debt targeting individual investors in the coming months and is keeping an eye out for possible return to the global bond market again this year, Treasurer Sharon Almanza said Wednesday.
The government plans to increase its gross borrowings this year by about 3% to 2.68 trillion pesos.
News.Az
By Nijat Babayev
