S&P grants ‘BBB’ rating to govt euro bond offer
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 25 Apr 2019 16:20:28 +0000
THE government’s planned euro debt market received on Thursday an investment grade score from S&P Global Ratings.
In a statement, the debt watcher said it had “assigned its ‘BBB’ long-term foreign currency rating to the proposed benchmark-size euro-denominated senior unsecured notes to be issued by the Philippines.”
The debt papers “represent direct, general, unconditional, unsecured and unsubordinated obligations of the sovereign, and rank equally with the sovereign’s other
unsecured and unsubordinated debt obligations,” it added.
Reports on Wednesday said the country had begun marketing the benchmark euro bond issue, which is typically set at least $500 million.
Details of the euro bond sale are yet to be announced, as the Bureau of the Treasury is “yet to see market appetite,” according to a message by National Treasurer Rosalia de Leon.
The planned euro bond is one of the government’s fundraising efforts in offshore markets.
In January, the government raised $1.5 billion through a 10-year global bond issue, which received a tight spread of 110 basis points over the US Treasuries.
Last August, it raised 154.2 billion yen or $1.39 billion from the issuance of three-year yen-denominated samurai bonds.
This came months after the government raised 1.46 billion renminbi or $230 million from its maiden panda bond issuance in March.
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