THE DUTERTE ADMINISTRATION’S second global bond offer met “strong” demand, enabling the government to raise some $750 million in new money, the Finance department said in a press release on Friday.

“The strong support that this 10-year global bond float has received in the international capital markets is a testament to the deepening investor confidence in the country’s newfound status under the Duterte presidency as one of the world’s fastest-growing economies,” the statement quoted Finance Secretary Carlos G. Dominguez III as saying.

The transaction saw $1.25 billion worth of outstanding debt redeemed in a bond swap as part of liability management that reduced overall interest expense and $750 million in “new money” raised, the department added.

The new debt papers fetched a 3.0% coupon that was lower than the initial 3.3% pricing guidance.

“The capital raised from this bond float plus the additional revenue take from the newly-implemented TRAIN Law will help bankroll President Rodrigo (R.) Duterte’s ‘Build, Build, Build’ program to modernize the country’s infrastructure, sharpen its global competitiveness and sustain rapid and inclusive growth as well as financial inclusion for all Filipinos,” Mr. Dominguez added, referring to Republic Act No. 10963 — or the Tax Reform for Acceleration and Inclusion (TRAIN), the first of up to five planned such overhauls cumulatively designed to make the country’s taxation fairer while yielding more revenues.

This is the second global bond sale under Mr. Duterte, whose government sold $2 billion worth of 25-year bonds in January last year, raising $500 million in new money and swapping some $1.5 billion.

Mr. Dominguez said earlier this month that the government intends to sell yuan-denominated “panda” bonds as early as this quarter and yen-denominated “samurai” bonds “towards the end of the year.” — KANV

RELATED ARTICLESMORE FROM AUTHOR