(Bloomberg) -- The Philippines raised $2 billion from a two-part dollar bond sale on Tuesday, its first trip to the international market this year that may usher similar offerings from the Southeast Asian nation’s corporate borrowers.  

The sovereign bond sale is part of a plan to raise about $5 billion in funding from overseas markets for 2024, Finance Secretary Ralph Recto said in a May 7 mobile-phone reply to queries.

The Philippines priced $1 billion of 10-year bonds at 80 basis points above comparable US Treasuries and $1 billion of 25-year sustainability note at a yield of 5.6%, according to a person familiar with the matter. Both yields were well below the initial price talk of 120-basis point area and 6.05%.

May is turning into one of the busiest months this year for Asian dollar bond issuance as borrowers take advantage of easing global yields. The Philippines is one of the most active issuers in the region, as it relies on funds overseas to help finance a persistent budget deficit, estimated at about $26 billion this year.

Read: Asian Bond Sales Mark Busiest Day in Year Adding to Global Boom

The Philippines said it plans to use the proceeds from the debt sale for general budget funding as well as financing and refinancing assets in line with its sustainable finance framework. The nation has some $774 million of bonds due in September and another $1 billion notes due in October.

On the corporate front, Security Bank Corp. is in the market for a five-year benchmark dollar bond offering. SM Investments Corp., the Philippines’ biggest conglomerate by market value, has set up a $3 billion multi-issuer euro medium-term note program.

In 2023, the Philippines made two ventures into the international dollar bond market, with a $3 billion three-part deal in January that year and another $1 billion in its first Islamic note in November.

--With assistance from Ameya Karve.

(Updates with pricing details in third paragraph)

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