MANILA, Philippines — The Philippine government borrowed RMB 2.5 billion (P19 billion) from Chinese investors following a “successful” sale of three-year Panda bonds, the Bureau of the Treasury reported Thursday.
In a statement, the BTr said the Yuan-denominated bonds were priced at 3.58%, which allowed the Philippines to achieve a tight spread of 32 basis points above the benchmark.
It added that the Panda bond float — which was the second such offer by the Philippines under the Duterte administration — was met with “warm reception,” adding that the order book reached a total of more than RMB11 billion (P84 billion).
China Lianhe Credit Rating Co. Ltd. rated both the Philippines and latest Panda bond float as AAA, its highest rating. Aside from the local AAA rating, the Philippines has an international rating of Baa2/BBB+/BBB (Moody’s/S&P/Fitch).
“The success of our Panda bonds issuance, along with other recent issuances, resonates the positive market sentiment on Philippine credit,” National Treasurer Rosalia de Leon said.
“Through strategic and timely offerings, we are able to tap various markets even in a challenging environment that allowed for the Republic that resulted in more cost-efficient pricing,” she added.
Proceeds from the bond float will be used to provide budgetary support for the Philippine government, which has embarked on an ambitious infrastructure program. — Ian Nicolas Cigaral