The Philippines returned to the euro bond market for the first time in more than a year on Wednesday, raising €2.1bil (US$2.5bil).

The nation tapped low interest rates in the euro bond market with a three-part note offering. Proceeds from the issuance will be used in part for the nation’s budget, as the Philippines tackles the economic fallout from the pandemic.

The Philippines has the highest number of active coronavirus cases in South-East Asia, and a recent surge in infections is overwhelming hospitals and dimming economic outlook.

Its central bank governor has said that full-year economic growth might be slowed to 6%-7%, compared with its earlier forecast of 6.5%-7.5%.

Philippines finance secretary Carlos Dominguez said earlier this month the government plans to sell dollar bonds too before interest rates rise.

The latest borrowing came less than a month after the nation raised 55 billion yen (US$509mil) in the Samurai bond market.

The government sold €650mil of four-year notes at 75 basis points over mid swaps.

Source: Bloomberg