Philippines sells $2 billion of global bonds; Indonesia sets roadshow; Asian bonds firm

By Aleesia Forni

New York, Feb. 17 – The Republic of the Philippines sold an offering of global bonds on Wednesday amid an improved tone for the asset class.

The sovereign sold $2 billion of the 3.7% global bonds (Baa2/BBB/BBB-) due March 1, 2041 at par, according to a market source.

Pricing came inside guidance set in the 3¾% area. Initially, talk was in the 4% area.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC, J.P. Morgan Securities LLC, Morgan Stanley, Standard Chartered Bank and UBS AG Hong Kong Branch are lead managers.

Proceeds will be used to repay debt and for general purposes.

In other primary happenings, the Republic of Indonesia (Baa3/BB+/BBB-) announced that it will begin a series of investor meetings on Monday ahead of a possible bond issuance, according to an informed source.

BofA Merrill Lynch, CIMB, Citigroup Global Markets Inc. and HSBC Securities are arranging the meetings.

The meetings will be held in North America and Asia.

Meantime, Asian bonds were also trading tighter, with China National Offshore Oil Corp.’s 2025s were around 4 basis points better.

And Ukrainian bonds meanwhile closed mostly lower after the country fell into political uncertainty on Tuesday as Prime Minister Arseniy Yatsenyuk survived a no-confidence vote.

Sovereign bonds were also lower, with Ukraine’s 2019s falling to 90½ bid.

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