The Philippine government raised 1.46 billion renminbi or around $230 million from the sale of Panda bonds in China Tuesday, National Treasurer Rosalia de Leon said.
De Leon said in a statement the order book for the issuance reached 9.22 billion renminbi or 6.22 times the issue size of 1.46 billion renminbi. The bonds fetched a coupon of 5 percent “or 35 basis points over the two-year Chinese bond rate of 4.65 percent.”
“The government raised 1.46 billion RMB or about 230 million dollars,” de Leon said in a message. She said total tenders for the issuance were the “highest ever order book” so far for a Panda bond issuance.
The issuance followed an international deal roadshow by the Philippine delegation led by de Leon and Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo.
Backed by the Philippines’ strong macroeconomic fundamentals, the bonds were rated “AAA” by China’s Lianhe Credit Rating Co. Ltd.
The Panda bonds issuance was a part of the Philippine government’s efforts to diversify its investor base. The RMB proceeds will be deposited with the BSP. Once converted, the peso proceeds will help fund government infrastructure projects and other financing requirements.