By Reshmi Basu
New York, Sept. 8 - The Republic of Philippines priced $1 billion in add ons to two sovereign issues (Ba2/BB) on Wednesday to raise funds for cash-starved National Power Corp. the country's state-owned power monopoly, according to an informed source.
A $300 million add-on to the 8 7/8% bonds due 2015 priced at 98.00 to yield 9.176% for a spread of 497 basis points over U.S. Treasuries.
Meanwhile a $700 million add-on to the 10 5/8% bonds due 2025 priced at 106.25 to yield 9.907% or a spread of 492 basis points over U.S Treasuries.
Credit Suisse First Boston, Deutsche Bank AG and JP Morgan Chase & Co. arranged the Philippines' debt sale.
| Issue: | Republic of Philippines
|
| Amount: | $1 billion
|
| Underwriters: | Credit Suisse First Boston, Deutsche Bank AG, JP Morgan Chase & Co.
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody's: Ba2
|
| Standard and Poor's: BB
|
|
|
| 2015 maturity
|
| Issue: | Tap of 8 7/8% bond due 2015
|
| Re-open amount: | $300 million
|
| Total amount: | $800 million
|
| Maturity: | March 17, 2015
|
| Coupon: | 8 7/8%
|
| Issue price: | 98.00
|
| Yield: | 9.176%
|
| Spread: | Treasuries plus 497 basis points
|
|
|
| 2025 maturity
|
| Issue: | Tap of 10 5/8% bonds due 2025 |
|
| Re-open amount: | $700 million
|
| Total amount: | $2 billion
|
| Maturity: | March 16, 2025
|
| Coupon: | 10 5/8%
|
| Issue price: | 106.25
|
| Yield: | 9.907%
|
| Spread: | Treasuries plus 492 basis points
|
|
|
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