Key facts
- The Philippines is issuing bonds on the international market for the second time this year.
- The issuance aims to fund state spending amid easing borrowing costs.
- Offerings include 5.5-year and 10-year notes, and a reopening of the January 2051 bond.
- Initial price guidance for the 5.5-year tranche is around 85 basis points over US Treasuries.
- Initial price guidance for the 10-year tranche is about 125 basis points over US Treasuries.
- The 25-year bond tap has an initial indicative yield of 6.1%.
The Philippines is accessing the international bond market for the second time this year, taking advantage of a favorable environment with easing borrowing costs driven by optimism over a potential US-Iran agreement. The sovereign issuer is offering new notes with maturities of 5.5 years and 10 years, and is also reopening its bond that matures in January 2051. Initial price guidance for the 5.5-year tranche is set around 85 basis points over US Treasuries, while the 10-year paper is guided at approximately 125 basis points over. The tap of the 25-year bond has an initial indicative yield of 6.1%. The bonds are expected to be priced later during New York trading hours.