MANILA - Fresh from a euro bond issue, the Philippines was back in the capital debt market on Wednesday, this time raising 2.5 billion yuan ($363.41 million) from the sale of three-year Panda bonds, the Finance Ministry said.
The bonds, which were sold at 3.58% and offered 32 basis points over benchmark, were the second of such offering by the Philippines which made its debut in the Panda bond market in March last year, raising 1.46 billion yuan ($212.23 million) from a three-year note at 5%.
Finance Secretary Carlos Dominguez said the success of the issue "illustrates the high level of confidence of the international markets in the Philippines".
The issue was more than four times oversubscribed, the Department of Finance said, with orders reaching more than 11 billion yuan.
Proceeds from the bond sale will help finance this year's 3.7 trillion pesos ($70.7 billion) budget which was only signed into law in April after months of months of squabbling between the upper and lower chambers of the house.
The Philippines needs to catch up with its spending plan to ensure economic growth picks up from the current quarter after it slowed to a four-year low in the first three months of the year.
The Philippines, one of Asia's most active sovereign debt issuers, raised 750 million euros ($840.38 million) in eight-year euro-denominated bonds last week in an offering that was six times oversubscribed.
Credit rating agency Standard & Poor's raised its long-term sovereign credit rating on the Philippines to BBB+ from BBB last month to reflect its strong economic growth trajectory.
($1 = 6.8792 Chinese yuan renminbi)
(Reporting by Karen Lema) ((email@example.com; +632 841-8938; Reuters Messaging: firstname.lastname@example.org))