Strong investor confidence in RP reflected in $750-million bond offer

MANILA, Philippines – Socioeconomic Planning Secretary Ralph Recto said the government’s successful global bond offer last week reflected strong investor confidence in the Philippines.

“This is clearly a thumbs-up coming from investors from all over the world,” he said.

Last week, the government successfully raised $750 million from the sale of dollar-denominated bonds to foreign investors. Proceeds would help plug the state’s widening budget deficit, which is projected to hit P250 billion this year, revised from a previous program of P199.2 billion.

Recto said the fresh inflows would help fund the government’s stimulus program.

“The funds from the bond offer will enable us to capitalize on the opportunities that will come with the global rebound,” Recto said.

Furthermore, he said these investments will serve as stimulus measures that would help position the country for higher growth once recovery starts in the world’s largest economies.

Recto added that the investments being funded by both government revenues and supplemented by the funds raised from the bond offer are part of the administration’s efforts to enhance the Philippines’ competitive position and to translate the benefits of economic reform into real benefits for the people.

Citibank, Credit Suisse and Deutsche Bank were the joint lead managers and bookrunners for the bond transaction.