Philippines Starts 25-Year Dollar Bond Sale Before May Vote
- Initial yield guidance of 4% more than secondary-market rate
- Government has approval to sell as much as $2 billion of debt
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The Philippines has started marketing 25-year sovereign dollar bonds as is seeks to retire shorter-term debt three months before an election.
The notes are being offered at an initial yield guidance of 4 percent, according to people familiar with the sale who asked not to be identified because the information isn’t public. Investors holding global securities due 2016 to 2037 are invited to switch to the new bonds or tender for cash, the Bureau of the Treasury said in a statement. The guidance is at a premium to the 3.53 percent secondary-market yield on the nation’s dollar paper due 2040.