New York, March 21 – The Philippines priced a RMB 1.46 billion of three-year Panda bonds with a 5% coupon, according to a news release.
The offering came at the low end of talk for a coupon of 5% to 5.6%.
Pricing was equivalent to a spread of 35 basis points.
The Philippines said the offering was oversubscribed by 6.32 times and included participation from onshore investors and, via the Bond Connect program, offshore buyers. Offshore accounts made up 87.7% of the allocation.
Bank of China was lead manager with Standard Chartered Bank as joint lead manager.
A roadshow to market the debt was held from March 14 to March 16 in Singapore, Hong Kong and China.
Proceeds will be used to fund infrastructure projects and for other financing requirements.
The bonds will be rated AAA by Lianhe Credit Rating Co. Ltd.
The Philippines said that the transaction is the first Panda bond sale by a sovereign in the Asean region.
“The Philippine government’s successful inaugural issuance of Panda bonds highlights the investor confidence that the country enjoys on the back of its strong credit profile,” said finance secretary Carlos Dominguez III in the news release.
“The Duterte administration is committed to sustaining the growth momentum and making the economy a more inclusive one by way of massive investments in infrastructure and human capital development. It intends to pursue this unprecedented level of public spending while maintaining sound economic policies and observing fiscal discipline.”
| Issuer: | Philippines
|
| Issue: | Panda bonds
|
| Amount: | RMB 1.46 billion
|
| Maturity: | Three years
|
| Lead managers: | Bank of China, Standard Chartered Bank
|
| Coupon: | 5%
|
| Spread: | 35 bps
|
| Pricing date: | March 20
|
| Rating: | Lianhe: AAA
|
| Price talk: | 5% to 5.6%
|
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