Philippines completes US$1.5b bond issue
Posted: 08 January 2009 1347 hrs

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MANILA: The Philippines said Wednesday it had raised US$1.5 billion in a 10-year bond issue to stem a shortfall in revenue this year caused by slowing economic activity.

Asia's first international sovereign bond for this year attracted around US$6 billion in demand from global investors, Dow Jones Newswires reported, quoting a Philippines finance department statement in Singapore where the float was launched.

"The transaction fulfils the government's expected external funding requirements for 2009 and represents an important success for the Philippines," Finance Secretary Margarito Teves said in the statement.

"We are hopeful that our success will bode well for other Philippines and Asian borrowers," he added.

The public offshore bond market has not seen a deal out of Asia since the global credit crisis took hold in September, the report said.

Pricing was at the tight end of the indicative yield range of 8.50 and 8.75 per cent touted to investors Wednesday, it added.

The issue was lead-managed by Credit Suisse, Deutsche Bank and HSBC Holdings.

Manila will use the proceeds to help finance a programmed budget deficit of 102 billion pesos (US$2.2 billion) this year.

- AFP/yb