Home Business Top Business Govt sells $856M in ‘samurai’ bonds

Govt sells $856M in ‘samurai’ bonds

THE government returned to the Japanese market on Friday by raising 92 billion yen (about $855.6 million) worth of multitenor “samurai” bonds.

“The book was more than 100 billion yen, but we only issued 92 billion yen. Even that, we really just wanted $750 million to show our appreciation to those investors who participated,” National Treasurer

National Treasurer Rosalia de Leon

told reporters.

The three-, five-, seven- and 10-year tenors that made up the offering raised 30.4 billion, 21 billion, 17.9 billion and 22.7 billion yen, respectively

The issuance fetched coupon rates of 0.18 percent, 0.28 percent, 0.43 percent and 0.59 percent for the three-, five-, seven- and 10-year tenors, respectively.

The three-year bond will mature on Aug. 15, 2022; the five-year, on Aug. 15, 2024; the seven-year, on Aug. 14, 2026; and the 10-year, on August 15, 2029.
Transactions will be settled on August 15.

International debt watcher S&P Global Ratings assigned the issuance an investment grade rating of “BBB+.”

“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,” S&P said in a statement on Friday.

Another global credit-rating agency, Moody’s Investors Service, also assigned an investment grade rating, saying “it mirrors the [Philippine government’s] issuer rating of ‘Baa2’ and a stable outlook.”

Samurai bonds are yen-denominated securities issued by non-Japanese entities in Tokyo.

De Leon earlier said the samurai bond program was part of the government’s diversification of its funding sources.

The government last sold samurai bonds in August last year, when it raised 154.2 billion yen or $1.39 billion — a result the government described as reflective of strong investor interest in the country.

The three-, five-, and 10-year tenors that made up that offering raised 107.2 billion, 6.2 billion and 40.8 billion yen, respectively.

The bond issuance fetched coupon rates of 0.38 percent, 0.54 percent and 0.99 percent for the three-, five- and 10-year tenors, respectively.

Overall, the transaction yielded a weighted average spread of 34.7 basis points above the benchmark.|

The transaction was settled on Aug. 15, 2018.

Knott sets new record in PH, SEA Games in women’s 200m event in Athletics

KRISTINA Knott shattered her own record to set a new one in the Philippines and Southeast Asian Games in the women's 200-meter event on...

PH snares 2 more golds in taekwondo poomsae

THE Philippines snared two more gold medals in the ongoing taekwondo poomsae (forms) competition at the Ninoy Aquino Stadium. The trio of Dustin Jacob Mella,...

Saudi student opens fire at Florida Naval base, killing 3

PENSACOLA, Florida: An aviation student from Saudi Arabia opened fire in a classroom at the Naval Air Station Pensacola on Friday morning, killing three people...

1-2 finish for PH men’s doubles in tennis

Congratulations Jeson Patrombon and Francis Casey Alcantara for winning the gold in the men's doubles tennis competition of the 30th SEA Games here in...

Reyes wins gold in men’s individual recognized poomsae for PH taekwondo team

RODOLFO Reyes Jr. triggered a golden start for the Philippine taekwondo team after ruling the men's individual recognized poomsae (forms) on Saturday at the...