By Paul A. Harris
St. Louis, Jan. 4 - The Republic of Philippines priced approximately $2.10 billion of global bonds (B1/BB-/BB) in two tranches on Wednesday, according to a market source.
Credit Suisse First Boston, Citigroup and Deutsche Bank were the underwriters for the issues of notes, which are registered with the U.S. Securities and Exchange Commission.
The Philippines priced $1.5 billion of 7¾% 25-year bonds at 98.641 to yield 7 7/8%, at the tight end of the 8% area guidance.
Also pricing was a €500 million issue of 6¼% 10-year notes at 99.112 to yield 6 3/8%, giving a 294.4 basis point spread to mid-swaps. The euro-denominated notes also priced tight to guidance of 6½% area or mid-swaps plus 304 basis points.
An investor told Prospect News that demand for the bonds topped $6 billion.
Proceeds will be used for general purposes including budgetary support.
| Issuer: | Republic of Philippines
|
| Amount: | $2.10 billion (approximate)
|
| Underwriters: | Credit Suisse First Boston, Citigroup, Deutsche Bank
|
| Security description: | SEC Registered global bonds
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Fitch: BB
|
| Trade date: | Jan. 4
|
| Settlement date: | Jan. 11
|
|
|
| Dollar-denominated issue
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 14, 2031
|
| Coupon: | 7¾%
|
| Price: | 98.641
|
| Yield: | 7 7/8%
|
| Spread: | 333.5 basis points
|
| Guidance: | 8% area
|
|
|
| Euro-denominated issue
|
| Amount: | €500 million
|
| Maturity: | March 15, 2016
|
| Coupon: | 6¼%
|
| Price: | 99.112
|
| Yield: | 6 3/8%
|
| Spread to Treasuries: | 309.6 basis points
|
| Spread to mid-swaps: | 294.4 basis points
|
| Guidance: | 6½% (mid-swap plus 304 basis points)
|
|
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