AUCTION. The Bureau of the Treasury's (BTr) auction committee makes a partial award for the seven-year Treasury bond Tuesday (Jan. 21, 2020) after investors asked for high yields. Treasury officials have attributed the recent upticks in domestic interest rates to inflationary pressures due to volatility in global oil prices and the impact of the Taal Volcano eruption. (Photo by Joann Villanueva)
MANILA – Philippine Treasury officials are open to sell about USD1 billion worth of three and nine-year Euro bond after receiving positive feedbacks during the investor calls for the planned issuance starting Monday.
Deputy Treasurer Erwin Sta. Ana said they had “successful calls with select investors” not only from Europe but also from Asia.
Sta. Ana said they are still weighing their options on the volume and timing of the issuance since they still have calls to make Tuesday.
Last year, the government issued 750 million euro (USD842 million) worth of eight-year debt paper, which Sta. Ana said is “quite liquid.”
“So, we feel that (a) nine (year tenor) is an optimal or a sweet spot for us,” he said.
Sta. Ana said they review again the initial expressions of interest and “then we will decide a little bit later if it's a go or not.”
Treasury officials said they plan to issue benchmark volume, which is USD500 million.
The planned issuance has been given investment grade ratings by both the S&P Global Ratings and Fitch Ratings.
Sta. Ana said they remain open for the issuance of other debt paper denominated in the US dollar, yen, yuan, and even the peso-denominated retail treasury bond (RTB).
He said the yen-denominated Samurai bond that the Philippines issued in 2010 will mature this year and “we have to prepare for that.” (PNA)
