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PH launches sustainable Samurai bonds in Japan

A pedestrian walks past a screen displaying closing information for the Tokyo Nikkei Stock Average in Tokyo, Japan, March 4, 2022. Kimimasa Mayama, EPA-EFE

MANILA – The Philippines has launched its first sustainable samurai bond, or yen-denominated bond, in Japan, the Treasury Office announced on Wednesday.

The 70.1 billion yen (about 28.9 billion pesos) offering is a 5-year, 7-year, 10-year and 20-year multi-tranche sustainability bond with environmental, social and governance (ESG) standards ), the BTr said in a statement. statement.

The agency said it was the first-ever ASEAN Sustainability bond transaction issued by the country on the Samurai bond market.

“Amid market volatility and growing geopolitical tensions, this historic Samurai transaction demonstrated the Republic’s ability to price tighter than current secondary levels and extend maturity at the long end of the curve” , National Treasurer Rosalia De Leon said.

“The large-scale transaction backed by new investors from regional banks and Japanese life insurance companies highlights the Republic’s strong credit profile in global capital markets,” she added.

Meanwhile, Finance Secretary Carlos Dominguez III said the successful issuance showed investors’ appetite for Philippine financial instruments despite the current market volatility.

“This demonstrates international appreciation and confidence in the government’s strong commitment to climate change mitigation and adaptation initiatives and to deepening its domestic market for sustainable finance,” Dominguez said.