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PH raises 2.5B RMB from panda bonds

May 16, 2019

A warm reception from investors has enabled the government to raise 2.5 billion renminbi (RMB) from its issuance of panda bonds, the Bureau of the Treasury (BTr) announced on Wednesday night.

In a statement, the Treasury bureau reported that the three-year bonds were priced at 3.58 percent, allowing the government to achieve a tight spread of 32 basis points above the benchmark.

“The order book reached a total of more than RMB11 billion, reinforcing a strong vote of confidence in the Republic’s economic stewardship and transformative reform agenda,” it added.

Transactions are expected to be settled on May 20.

The issuance and the Philippine has been assigned the highest rating of “AAA” by China Lianhe Credit Rating Co. Ltd..

In terms of the geographical breakdown of investors, leveraging on the Bond Connect scheme, 42.4 percent of the final allocation was placed to China’s onshore investors and 57.6 percent went to overseas investors, according to the Treasury.

Major investors include commercial banks from China’s onshore and offshore markets, it said.

The latest offering is the second made by the Duterte administration; the first was made in March last year, which was met with strong investor demand.

That 1.46-billion-renminbi ($230-million) offering was more than six times oversubscribed, with the order book reaching 9.22 billion renminbi.

It fetched a coupon rate of 5 percent with a tight 35 basis points spread above the benchmark.

Credit belongs to : www.manilatimes.net


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