THE Philippine government wants to borrow overseas via a two-part dollar bond offering aimed at financing its budgetary needs, Bloomberg said on Tuesday.

Pricing for the 10-year fixed and 25-year fixed sustainability bonds was expected Tuesday in New York, but details remained unavailable as of press time.

Finance Secretary Ralph Recto, when contacted, said an announcement would be made by the Bureau of the Treasury.

Finance Secretary Ralph Recto. Photo from Department of Finance

Bloomberg reported that the Philippines was looking to raise as much as $2 billion from the bond sale and that the offering was part of a plan to raise $5 billion overseas this year.

Earlier on Tuesday, it said that the 10-year bond, due on May 14, 2034, would be priced in the "+120 area," while that for the 25-year due May 14, 2049, would be in the "6.05 percent area."

Settlement has been set for May 14, 2024.

Proceeds will be used for "general budget financing and to finance/refinance assets in line with the republic's sustainable finance framework."

Bank of America, HSBC, JP Morgan and Standard Chartered were said to be among the bookrunners, while HSBC, Standard Chartered and UBS would be the sustainability structuring banks.

Information about the deal was said to have come from a "person familiar with the matter, who asked not to be identified because they're not authorized to speak about it."

Fitch said that it had assigned a "BBB" rating, with a stable outlook, to the proposed dollar bond offering.

This was in line with the country's investment-grade rating, also with a stable outlook, that was last affirmed in November last year.

S&P Global and Moody's, meanwhile, respectively assigned ''BBB+" and "Baa2" ratings, both also in line with the Philippines' investment-grade status.

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