The Philippines has sold $1.38 billion in yen-denominated bonds, with strong investor demand for its return to the market for so-called 'samurai' debt after an eight-year break, the country's finance ministry said on Wednesday. That was more than the $1 billion the government had earlier this year planned to raise from the issue, part of its financing programme for 2018.
The offering follows the sale of $230 million worth of yuan-denominated 'panda' bonds in March and a $750 million global bond issue in January, with proceeds from both issues used to finance infrastructure projects. The 154.2 billion yen ($1.38 billion) transaction consists of 107.2 billion yen of three-year bonds with a 0.38 percent coupon, 6.2 billion yen of five-year bonds with a 0.54 percent coupon and 40.8 billion yen of 10-year bonds with a 0.99 percent coupon.
"This successful return to the samurai bond market is the latest proof of the deepening investor confidence in the Philippine economy," Finance Secretary Carlos Dominguez said in a statement. National Treasurer Rosalia de Leon said in May that the government was looking at another global bond issue before the year ends to raise an additional $1 billion. President Rodrigo Duterte has promised to usher in a "golden age of infrastructure" through his six-year $180 billion 'Build, Build, Build' development plan.
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