Philippines Taps International Bond Market Amid Easing Oil Pressure | PiQ Markets
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Philippines Taps International Bond Market Amid Easing Oil Pressure
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IN SHORT
The Philippines is tapping international bond markets for the second time this year, issuing 5.5-year and 10-year notes, and reopening its 2051 bond. This move is facilitated by lower borrowing costs, fueled by optimism surrounding a potential US-Iran agreement. Meanwhile, Chinese developers face difficulties raising funds through tokenized assets due to weak credit and regulatory uncertainty. In India, the Brihanmumbai Municipal Corp. has extended the deadline for merchant banker selection for its 95 billion rupee municipal bond offering to June 19.
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Key Numbers
95 billionrupee municipal bond offering
June 19new deadline for bids
June 22bid opening date
Who's Involved
Philippines
nation issuing international bonds
US
nation involved in potential agreement influencing bond markets
Iran
nation involved in potential agreement influencing bond markets
Chinese property developers
entities struggling with tokenized asset fundraising
Brihanmumbai Municipal Corp.
civic authority extending municipal bond bid deadline
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Key facts
The Philippines is issuing bonds on the international market for the second time this year.
The Philippines is offering 5.5-year and 10-year notes, and reopening its 2051 bond.
Lower borrowing costs are driven by optimism over a potential US-Iran agreement.
Two Chinese property developers are struggling to raise funds via the tokenized asset market.
Challenges for Chinese developers include weak credit profiles and regulatory uncertainty.
The Brihanmumbai Municipal Corp. has extended the deadline for merchant banker selection.
The new deadline for bids is June 19.
Bid opening for merchant banker selection is on June 22.
The BMC is planning a 95 billion rupee municipal offering.
The Philippines is returning to the international bond market for the second time this year, seeking to capitalize on reduced borrowing costs. This favorable environment is attributed to growing optimism about a potential agreement between the US and Iran. The offerings include new 5.5-year and 10-year notes, alongside a reopening of its existing 2051 bond. These issuances aim to secure funding amidst evolving global economic conditions.
In contrast, two Chinese property developers are encountering significant obstacles in their attempts to raise capital through the tokenized asset market. Their struggles stem from weak credit profiles and prevailing regulatory uncertainty, which are hindering investor confidence. These challenges in the digital asset space echo the difficulties faced by these developers in traditional debt markets, highlighting broader issues within China's real estate sector.
Separately, India's Brihanmumbai Municipal Corp. (BMC), described as the country's richest civic authority, has extended the deadline for market participants to submit bids for merchant banker selection. This selection is crucial for its upcoming 95 billion rupee municipal bond offering. The new deadline for bid submission is June 19, with the bid opening scheduled for June 22. This extension provides additional time for potential bankers to prepare their proposals for the significant municipal issuance.
↳ Why This Matters
The Philippines is returning to the international bond market for the second time this year, seeking to capitalize on reduced borrowing costs. This favorable environment is attributed to growing optimism about a potential agreement between the US and Iran. The offerings include new 5.5-year and 10-year notes, alongside a reopening of its existing 2051 bond. These issuances aim to secure funding amidst evolving global economic conditions.
Frequently asked questions
The Philippines is accessing the international bond market to raise capital for state spending, taking advantage of eased borrowing costs.
The Philippines is offering new notes with maturities of 5.5 years and 10 years, and is reopening its bond due in January 2051.
Initial price guidance for the 5.5-year tranche is around 85 basis points over US Treasuries, and about 125 basis points for the 10-year paper.
The tap of the 25-year bond has an initial indicative yield of 6.1%.
What Happens Next
01The bonds are expected to be priced later during New York trading hours.
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