The Philippines has issued $2.5 billion worth of bonds, making it the second time this year they’ve sold bonds in US dollars. This is the biggest bond deal in Asia on a busy Wednesday, ahead of a possible interest rate cut by the Federal Reserve.
The country sold bonds that will mature in 5.5 years, 10.5 years, and 25 years. The 25-year bond, which is considered sustainable, will offer a return of 5.175%.
Earlier this year, the Philippines raised $2 billion from a similar bond deal in May. The Finance Secretary, Ralph Recto, mentioned this was part of their plan to collect about $5 billion from international markets this year.
This recent bond sale is the largest among five US dollar bond deals that took place on Wednesday, which is the highest number of such deals in six weeks.
The increase in dollar bond sales comes after a slow start to the month, as global market instability had previously dampened debt issuance. So far this month, Asian countries have raised just under $10 billion through dollar bonds, which is less than a third of what was raised in July.
Last year, the Philippines issued dollar bonds in September and October, including a $3 billion deal in January and a $1 billion Islamic bond in November.
