Home Business News Planned Euro bond issuance gets investment grade ratings

Planned Euro bond issuance gets investment grade ratings

By Joann Villanueva

 

MANILA – Major credit rating agencies have given the Philippines’ planned benchmark Euro bond issuance investment grade ratings.

In a statement Monday, S&P Global Ratings said it has assigned a ‘BBB+’ rating on the country’s planned issuance.

“The notes 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 said.

Fitch Ratings gave the planned issuance an expected rating of ‘BBB’.

“The expected rating is in line with the Philippines’ Long-Term Foreign Currency Issuer Default Rating (IDR) of ‘BBB’ with Stable outlook,” it said.

On Monday, National Treasurer Rosalia de Leon said they have tapped four banks – – UBS, Citi, Standard Chartered, and Credit Suisse– for the planned bond issuance.

De Leon said they have started the investor calls Monday to check on market conditions but clarified they have done the indication in terms of tenor both for three and nine years.

She added they decided to announce the planned Euro bond issuance instead of the dollar bond because “obviously, you have to look at some strategy in assessing market conditions.”

De Leon said there is a “give and take advantage” of the negative yields in the Euro area right now.

“Obviously, we’ve been opening markets every year on the dollar but this time, we would want to approach the European investors coming from a very strong order book last year,” she said.

De Leon said there are still spillovers from last year’s issuance “that we’re not able to accept so we’re coming back for this issue.”

In May last year, the Philippine government raised 750 million euro (USD842) from the issuance of eight-year debt paper. (PNA)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

MUST READ

No Filipino citizenship for non-compliant foreigners: CA

By Benjamin Pulta   MANILA -- A Court of Appeals (CA) ruling stressed the need for strict compliance of requirements for foreign nationals seeking naturalization as a...

‘Soil restoration’ to cover all parts of Ilocos Norte

By Leilanie Adriano LAOAG CITY -- The provincial government of Ilocos Norte, through the Sustainable Development Center (SDC), is urging farmers to shift to organic...

P48M allotted for high-value crops production in Caraga

By Alexander Lopez BUTUAN CITY –- The Department of Agriculture in Caraga (DA-13) said a total of P48 million is allocated in the region for...

Espenido back to PRO-6 while facing adjudication

By Nanette Guadalquiver BACOLOD CITY –- Lieutenant Colonel Jovie Espenido welcomed the due process granted by Philippine National Police (PNP) Chief, Gen. Archie Gamboa, to...

PUV modernization on full swing this year—LTO-CAR

By Liza Agoot BAGUIO CITY --- The Land Transportation Franchising and Regulatory Board in the Cordillera Administration Region (LTFRB-CAR) on Tuesday said the implementation of...