Marcos administration to borrow $500-M via fresh dollar bonds sale
MANILA, Philippines — Unfazed by rising interest rates, the Marcos Jr. administration is turning to the international debt market once again to raise funds to support government operations and programs.
The Department of Finance said the national government is looking to borrow at least $500 million by issuing dollar-denominated bonds. The plan was made public on Monday.
The bond offering will have tenors of 5.5, 10.5, and 25 years.
JUST IN: The Marcos government will borrow at least $500 million through the issuance of US dollar bonds with tenors of 5.5, 10.5 and 25 years, tapping the international debt market for the second time. Proceeds will be used for general budget financing. @PhilippineStar
— Maureen Simeon (@maureensimeon) January 9, 2023
As it is, the Marcos Jr. administration sought the aid of the international debt market in October 2022. The national government was able to raise $2.5 billion from that exercise.
Interest rates in the Philippines saw steady increases in past months as the Bangko Sentral ng Pilipinas sought to tame inflation. As it is, the central bank moved in concert with the US Federal Reserve to keep the Philippines attractive enough for investors.
The BSP’s key policy rate, used by banks and financial institutions as a benchmark for giving loans, currently stood at 5.5%.
The country’s debt stock is comprised mainly of domestic liabilities (70%), since the national government explained it would protect the pile from foreign currency fluctuations. Even then, the country remains P13.64 trillion in debt as of November 2022. — with a report from The STAR/Louise Maureen Simeon
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