Philippine government's initial three-year Treasury bond (T-bond) offering for 2017 attracted more banks Tuesday, with tenders more than double the Php 15 billion offering.
The auction committee made a full award after tenders totaled Php 37.238 billion.
National Treasurer Roberto Tan said the tap facility would be opened until 3 p.m. Wednesday to cater to the strong demand for the said tenor.
"The auction went very well. (There was) very good demand, very auspicious for the year, very good pricing also so we fully awarded (the paper)," he said.
The Bureau of the Treasury (BTr) opens its tap facility if it received strong demand for the debt paper at a very good price to take advantage of the bids.
Average yield of the freshly issued paper stood at 3.364 while coupon rate is 3.375 percent.
The current average rate of the three-year paper is higher than the 3.169 percent it fetched during the auction of the same tenor on Oct. 20, 2015.
Meanwhile, Tan said the central bank's policy-making Monetary Board (MB) has issued the authority for the government's 2017 foreign borrowing amounting to about USD2 billion.
"We were informed that it was approved already but we will be expecting the copy of authority soon in the office," he said.
Tan said USD500 million of the said amount would be new money component, or cash, while the remaining USD1.5 billion will be used to retire old liabilities.
He added that they are now discussing with some banks on how to do the debt issuance and liability management but declined to elaborate.
Source: Philippines News Agency