UPDATE 1-Philippines returns to offshore bond market with three-tranche offer

Adds details, banks involved in deal

MANILA, March 21 (Reuters) – The Philippine government is looking to raise funds via a benchmark-sized U.S. dollar-denominated bond issue with tenures of five, 10.5 and 25 years, according to a government document seen by reporters on Monday.

The borrower has opened orders for a five-year bond at the 125 basis points over Treasuries area, a 10.5-year note at the 165 bps over Treasuries area and a 25-year bond at the 4.7% area, the document showed.

Proceeds from the two shorter-term issues will be used for budget financing, while the 25-year bond offer was specifically intended to raise money for the government’s “sustainable finance framework” programme.

Last month, Finance Secretary Carlos Dominguez said the government was finalising its sustainable finance framework for the issuance of the country’s inaugural green bonds offering worth at least $500 million. nL1N2UT083

Proceeds from the green bonds, which Dominguez had pitched to European investors, were intended to be used specifically for clean energy projects in the country.

Bank of China 601988.SS, Citigroup C.N, Credit Suisse CSGN.S, Deutsche Bank DBKGn.DE, Goldman Sachs GS.N, Mizuho 8411.T, Morgan Stanley MS.N, Standard Chartered STAN.L and UBS UBSG.S are the lead managers and bookrunners for the three-tranche issue.

The Philippines, one of Asia’s most-active sovereign debt issuers, is looking to raise 2.2 trillion pesos ($42 billion) to plug its budget deficit this year, about 75% of which is to be sourced from the domestic market.

(Reporting by Enrico Dela Cruz and Karen Lema
Editing by Ed Davies)

((enrico.delacruz@tr.com))