Philippines issues multi-mln-USD "panda bonds"

Source: Xinhua| 2019-05-15 23:33:47|Editor: ZX
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MANILA, May 15 (Xinhua) -- The Philippines issued on Wednesday its renminbi-denominated "panda bonds" of 2.5 billion China yuan (roughly 364 million U. S. dollars) with a tenor of three years, the Philippine Bureau of Treasury (BTr) said.

This is the second "panda bonds" issuance, or yuan-denominated debts sold by foreign issuers in China. The Philippines issued its first "panda bonds" in March 2018.

The BTr said major investors include commercial banks from China's onshore and offshore markets.

Reacting to the favorable results of the "panda bonds" issuance, Philippine Finance Secretary Carlos Dominguez said, "The success of the second Panda bond float, which has come on the heels of the similarly well-received float of euro-denominated offshore securities, illustrates the high level of confidence of the international markets in the Philippines amid the game-changing reforms initiated by President (Rodrigo) Duterte to sustain its upward growth trajectory and attract more investments."

"Such confidence by the global investor community stems from our solid creditworthiness brought about by the government's unwavering commitment to sound macroeconomic policies and fiscal discipline in the face of domestic and external challenges," Dominguez added.

Expounding on the gains from the positive market perception, the Philippine National Treasurer Rosalia de Leon said, "The success of our panda bonds issuance, along with other recent issuances, resonates the positive market sentiment on Philippine credit."

In March last year, the Philippines raised 1.46 billion China yuan (roughly 230 million U.S. dollars) from its maiden three-year "panda bond" issuance given strong investor demand.