The Philippine government on Thursday kicked off marketing of its two-part dollar bond offering, its first trip to the international market this year.

The government plans to reduce its overseas bond sales this year to $3.5 billion from $4.5 billion in 2024, with heightened global uncertainties prompting it to borrow more domestically as rate cuts continue, Finance Secretary Ralph Recto said early this week.

The Philippines has about $1.5 billion in dollar bonds that will be due in March and €650 million in euro-denominated debt in April.

The offer comprises a benchmark 10-year bond, with initial price target of about 120 basis points above comparable US Treasuries and a benchmark 25-year sustainability note, with initial target yield of around 6.1%, according to a person familiar with the matter who asked not to be identified.

Read: Philippines Plans $3.5 Billion in Global Bond Sales This Year

Source: FINANCE.YAHOO