Government sells $416-million OFW bonds
Friday, April 23, 2010
By Iris C. Gonzales
The government has so far sold $416 million worth of Fixed Rate Multicurrency Retail Treasury Bonds or the so-called OFW bonds as of yesterday.
The amount is $84 million short of completing the government’s target to issue $500 million worth of the bonds, intended mainly for overseas Filipino workers (OFWs).
Of the $416 million, the government has so far sold $355 million in dollar-denominated bonds and P46 million worth of the euro-denominated bonds, bringing the total sale as of yesterday to a dollar equivalent of $416 million, according to market sources.
The offer period for the bonds ends on April 27.
The government started the sale of the bonds last April 21, selling an initial $346 million in a price-setting auction.
The three-year dollar-denominated bonds fetched a coupon rate of 2.875 percent while the five-year dollar-denominated bonds fetched a coupon rate of 4.125 percent.
Meanwhile, the government fetched a coupon rate of 3.250 percent for the three-year euro-denominated paper and 4.125 percent for the five-year euro bond.
There are no indications yet if the government would again sell another batch of OFW bonds later this year as it has been authorized by the Bangko Sentral ng Pilipinas (BSP) to sell $1 billion worth of OFW bonds.
Analysts said that if the market asks for it, another sale may take place in the fourth quarter.
The Bureau of the Treasury (BTr) has already cancelled a scheduled auction for P8.5 billion worth of Treasury bonds next week because of the OFW bond sale.
The issue managers are First Metro Investments Corp., BPI Capital Corp., Development Bank of the Philippines, PNB Capital & Investment Corp., and BDO Capital & Investment Corp.
The sale of OFW bonds is part of government efforts to provide overseas Filipinos opportunities where they can park their hard-earned dollars and euros.
Source: Philstar
The government has so far sold $416 million worth of Fixed Rate Multicurrency Retail Treasury Bonds or the so-called OFW bonds as of yesterday.
The amount is $84 million short of completing the government’s target to issue $500 million worth of the bonds, intended mainly for overseas Filipino workers (OFWs).
Of the $416 million, the government has so far sold $355 million in dollar-denominated bonds and P46 million worth of the euro-denominated bonds, bringing the total sale as of yesterday to a dollar equivalent of $416 million, according to market sources.
The offer period for the bonds ends on April 27.
The government started the sale of the bonds last April 21, selling an initial $346 million in a price-setting auction.
The three-year dollar-denominated bonds fetched a coupon rate of 2.875 percent while the five-year dollar-denominated bonds fetched a coupon rate of 4.125 percent.
Meanwhile, the government fetched a coupon rate of 3.250 percent for the three-year euro-denominated paper and 4.125 percent for the five-year euro bond.
There are no indications yet if the government would again sell another batch of OFW bonds later this year as it has been authorized by the Bangko Sentral ng Pilipinas (BSP) to sell $1 billion worth of OFW bonds.
Analysts said that if the market asks for it, another sale may take place in the fourth quarter.
The Bureau of the Treasury (BTr) has already cancelled a scheduled auction for P8.5 billion worth of Treasury bonds next week because of the OFW bond sale.
The issue managers are First Metro Investments Corp., BPI Capital Corp., Development Bank of the Philippines, PNB Capital & Investment Corp., and BDO Capital & Investment Corp.
The sale of OFW bonds is part of government efforts to provide overseas Filipinos opportunities where they can park their hard-earned dollars and euros.
Source: Philstar
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