The Philippines successfully returned to the Samurai market with its 70.1 billion yen offering of multi-tranche 5-year, 7-year, 10-year, and 20-year Sustainability bonds with an Environmental, Social, and Governance (ESG) label across all four tranches.

This is the first ASEAN Sustainability bond transaction issued by the Philippines in the Samurai bond market, and follows the previous successful issuance of a 25-year sustainability bond last March in the US dollar market.

The Philippines was able to achieve a benchmark size for the transaction despite having the 5-year as the shortest tenor and the tighter pricing compared to secondary levels.

The Philippines also utilized demand in the long-end by issuing its first 20-year note in the Samurai market. In its first Sustainability Samurai bond, the Philippines successfully captured new investor accounts and demand of more than 70 billion yen in the midst of a volatile market environment.

The issuance was upsized to 70.1 billion yen (equivalent to around $600 million) following strong investor support.

Finance Secretary Carlos Dominguez said, “Following a successful US Dollar transaction, the Republic has once again exhibited investor appetite for Philippine financial instruments despite the current market volatilities with its successful issuance of the sovereign’s first-ever ESG Samurai bonds. This is testament to the international appreciation of, and confidence in, the government's strong commitment to climate change mitigation and adaptation initiatives and to deepening its domestic sustainable finance market.”

“This successful bond offering of the Republic underscores the continued support of the international investor community for the strategic sustainability objectives of the Duterte Administration, particularly its efforts to mobilize capital from ESG-conscious investors to accelerate the transition to a more sustainable and climate-resilient economy,” he added.

Finance Undersecretary Mark Dennis Joven said, “This maiden issuance of sustainability bonds in the Japanese market shows the ever-growing investor confidence in the Philippines and its commitment to advance green and social initiatives, even amidst compounding market uncertainties. The transaction also marks the first long-tenor Samurai offering of the Republic.”

National Treasurer Rosalia De Leon said, “Amid market volatility and rising geopolitical tensions, this landmark Samurai transaction has demonstrated the Republic’s ability to price tighter than current secondary levels and extend the maturity to the long-end of the curve. The upsized transaction supported by new investors from Japanese regional banks and life insurance companies highlights the Republic’s strong credit profile in the global capital markets.”

SMBC Nikko Securities Inc. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd acted as Lead Managers for this deal. Bureau of Treasury