The Philippines raised $1.3 billion from a sale of dollar bonds targeted at individuals as the government seeks to diversify its sources of funding.

“The good thing is we saw a lot of retail demand coming in from online platforms,” Deputy Treasurer Erwin Sta. Ana said in Manila Friday. The bonds due in 2029 have a coupon of 5.75%.

The Southeast Asian nation has raised a significant portion of its funding over the past two decades by tapping retail investors, but issuances were mostly in pesos. The move comes as emerging-market borrowers face higher borrowing costs, with the Philippine 10-year peso bond yield up about 80 basis points since mid-May.

The Philippines plans to borrow 2.2 trillion pesos ($39 billion) from domestic and international sources this year. The government sold its maiden retail dollar bonds in October 2021, when it raised $1.6 billion.

The Philippines plans to offer $1 billion of sukuk bonds in late November and is planning a euro bond sale next year. The government has also said it is looking to return to the international bond market this year with a $1 billion offering.

Author: Karl Lester M. Yap and Andreo Calonzo