The Philippines’ Bureau of the Treasury has sold 463.3 billion pesos ($9.53 billion) worth of three-year Retail Treasury Bonds, raising 411.8 billion pesos of fresh funds, National Treasurer Rosalia De Leon said on Thursday.
Proceeds from the bond sale, which initially raised 221.2 billion pesos at a Feb. 9 auction for financial institutions and includes a bond exchange worth 51.5 billion pesos, will help finance the government’s pandemic relief and economic recovery initiatives.
The bond exchange was “well-received”, with 12.9% of the outstanding amount of the eligible bonds swapped for the new issue, the treasury bureau said in a statement.
The latest retail bond offer has a coupon rate of 2.375%.
“As we endeavour to win back our growth momentum from the clutches of the pandemic, we turn to retail treasury bonds as our curtain raiser in what is shaping (up) to be another busy year for fund raising,” De Leon said.
The Philippines, one of Asia’s most-active sovereign bond issuers, aims to raise $23.71 billion from external sources to bridge a planned budget deficit and fund infrastructure projects this year.
The borrowing programme includes a plan to raise $5.5 billion from commercial markets.
This year’s budget of 4.5 trillion pesos, the country’s largest ever, is intended to revive economic growth, with a 6.5%-7.5% GDP expansion targeted after last year’s record 9.5% contraction.
The budget also includes funding for the purchase of millions of doses of COVID-19 vaccines for an inoculation programme targeting 70 million Filipinos, or two thirds of the population.
The Philippines has among the highest numbers of coronavirus cases and deaths in Asia.
($1 = 48.60 Philippine pesos).