MOODY’S Investors Service announced that it has assigned an investment grade to the country’s recent Samurai bond offer, mirroring the sovereign rating of the Philippines.
In a statement, the credit watcher said it has assigned senior unsecured ratings of Baa2 to the Japanese yen-denominated bond offerings by the Government of the Philippines, including tranches maturing in 2027, 2029, 2032 and 2042.
“According to the terms and conditions available to Moody’s, the bonds will constitute direct, unconditional and unsubordinated obligations of the Government of the Philippines (the issuer). The bonds will rank pari passu with all of the issuer’s current and future senior unsecured external debt obligations of the issuer,” the credit watcher said.
“The proceeds from the bonds are intended for general purposes, including budgetary support and repayment of a portion of the issuer’s currently outstanding borrowings,” it added.
The recent issuance is the country’s first-ever ASEAN Sustainability bond transaction in the Samurai bond market and follows the previous successful issuance of a 25-year Sustainability bond last March 2022 in the USD market.
Finance Secretary Carlos Dominguez earlier 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 a 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.