Philippines plans to launch retail dollar bond issue in Q1

MANILA, Nov 30 (Reuters) – The Philippines plans to launch a US dollar retail treasury bond issue in the first quarter of next year, its finance secretary said on Wednesday.

The planned transaction will be the second of its kind, following a USD 1.6 billion five and 10-year offering in 2021.

Finance Secretary Benjamin Diokno told a media forum the government has yet to decide on the size of the issue, and the tenor would at least be five-years.

The onshore offer of an alternative investment product aimed at Filipinos overseas should boost funding for government programs to support the economy’s recovery.

The government traditionally offers retail treasury bonds denominated in local currency, with the most recent in September when it raised 420.45 billion pesos (USD 7.43 billion).

The Philippines, one of Asia’s most-active sovereign bond issuers, is planning to raise around USD 5 billion from offshore bonds next year, roughly the same as this year’s total, National Treasurer Rosalia de Leon told IFR, Refinitiv’s capital markets news service, this month.

Next year, the country will continue to favor US dollar bond sales, while also looking to return to the yen and euro markets, depending on market conditions. The Philippines is also looking at the possibility of issuing its maiden US dollar sukuk, said de Leon.

(USD 1 = 56.5600 Philippine pesos)

(Reporting by Karen Lema; Editing by Ed Davies)