By CHINO S. LEYCO
April 21, 2010, 4:11pm [ Manila Bulletin Online ]
The national government initially sold Wednesday $346 million of three- and five-year fixed-rate multi-currency retail treasury bonds aimed at expatriate Filipino workers and their families.
The Bureau of Treasury said the government sold $200 million of three-year bonds with a coupon rate of 2.875 percent, and another $98 million of five-year expatriate bonds at 4.125 percent.
Aside from the dollar denominated bonds, the Philippines also sold 35 million euros of three-year bonds and 4 million euros of five-year bonds at 4.125 percent.
The government is currently selling $400 million of three-and- five year dollar-denominated bonds and $100 million worth of three-year euro-denominated notes, which will end on April 27 this year.
National Treasurer Roberto B. Tan, said the government may decide to raise less than the programmed $500 million IOUs, depending on the cash position of the Arroyo administration.
“It's a successful offering,” Tan told reporters after the auction.
Tan also said the government may likewise cancel its planned bonds issuance next week.
Roberto Juanchito Dispo, First Metro Investment Corporation (FMIC) executive vice-president and one of the issue managers, said the will likely cap the sale of dollar and euro bonds targeted at $500 million for now and sell another $500 million in the second half.
BPI Capital Corporation, Development Bank of the Philippines, PNB Capital and Investment Corporation and BDO Capital and Investment Corporation are also issue managers of the government.
The OFW community would be encouraged to buy the bonds whose proceeds will help underwrite the country's multi-billion pesos infrastructure buildup program and plug the projected higher budget deficit.
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