THE Bureau of Treasury (BTr) said that they are offering the sale of their first Islamic bonds or Sukuk bonds.

In a statement, BTr noted that they are planning such issuance carrying a benchmark-sized US dollar-denominated Sukuk bonds offering.

This will have a 5.5-year tenure.

The said bonds also tasks Citigroup, Deutsche Bank, Dubai Islamic Bank, HSBC, MUFG and Standard Chartered Bank to make arrangements for the fixed income investor calls in Asia, Europe, Middle East and the United States.

Finance Secretary Benjamin Diokno said in September last year that they are looking to raise USD1 billion from the Sukuk bonds.

Diokno noted that Islamic issuances is a big help in diversifying the government's sources of financing and widen investor base.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort for his part said that the new issuance could generate market excitement.

"Market conditions locally and worldwide already improved since the start of November 2023, in terms of lower U.S. sovereign bond yields amid easing inflation trend towards central bank targets and pause in Fed(eral Reserve) and local policy rates for now, and would even lead to a possible cut in Fed rates in 2024 that could be matched locally," he said.