Philippines raises $2.35 bln in dollar bonds at record low rates

The Philippines said on Tuesday it raised $2.35 billion through the sale of 10-year and 25-year U.S. dollar bonds, to help finance this year's budget and measures to mitigate the economic impact of the coronavirus outbreak.

The 10-year and 25-year bonds were sold at 2.457% and 2.95%, respectively. They were the lowest coupon rates for the debts, National Treasurer Rosalia de Leon said in a statement.

Subscriptions for the issue reached $10.5 billion, or 4.5 times more the size of the offering.

"The strong demand for this bond issue demonstrates the resiliency of investor interest in the Philippine economy despite the global economic fallout from the COVID-19 pandemic," Finance Secretary Carlos Dominguez said in the same statement.

In January, the Philippines, one of Asia's most active issuers of sovereign debt, raised 1.2 billion euros ($1.30 billion) by selling its first ever zero coupon three-year euro-denominated bond and securing the lowest coupon ever for a nine-year deal.

The Philippines is raising funds to help finance its 4.1 trillion pesos ($80.93 billion) budget this year, part of which has been used to fund measures to address the economic and health impact of the coronavirus outbreak. ($1 = 0.9240 euros) ($1 = 50.6600 Philippine pesos)