MANILA – The Philippines raised P65 billion from the sale of retail treasury bonds on Tuesday, double the size of the original offer, in an indication of strong demand for government securities, National Treasurer Roberto Tan said.
The 10-year bonds will mature in 2026 and carry a coupon rate of 3.5 percent. The offering was four times oversubscribed with total bids reaching P124 billion, Tan said.
“The demand is very strong. This is just the right time for us to come out. There’s quite a lot of appetite because it has been a number of years since we last issued the RTB,” Tan told ANC’s “Market Edge with Cathy Yang,”
Proceeds from the bond issue will be used to help fund President Rodrigo Duterte’s ambitious plan to overhaul the country’s creaking infrastructure by raising spending on roads, bridges and transport terminals to 7 percent of gross domestic product.
Tan said earlier Tuesday he was planning to raise $500 million by selling global bonds next year to help finance Duterte’s proposed budget for 2017.