PH raises $1.5B from 2037 global bonds

Posted at 01/05/12 8:28 AM

MANILA (UPDATE) - The Philippines said on Thursday it raised $1.5 billion from the sale of 2037 global bonds in an offering that was about eight times oversubscribed, underscoring investors' appetite for emerging market assets. 

In a statement issued early Thursday, the Department of Finance said the bonds were sold with a 5% yield.

"We are very pleased to have once again been able to extend the Republic’s maturity profile while at the same time achieving the lowest yield for a new 25-year benchmark US Dollar Global offering by the Philippines," Finance Secretary Cesar Purisima said.

Treasurer of the Philippines Roberto Tan said the "positive investor reception for this transaction allowed us to achieve our funding objectives in support of our fiscal program."

This is the third time in 5 years the government has sold 25-year dollar bonds, its longest-term overseas debt.

With the bond sale, the government has raised two-thirds of its total 2012 foreign debt requirement of $2.25 billion.  

The offer attracted orders of $12.5 billion, Rosalia de Leon, head of the Finance department's international finance group, told Reuters in a phone interview.  

The government said the biggest demand - 35% - came from the U.S., followed by 25% from the Philippines, 25% from the rest of Asia and 15% from Europe.

Earlier, Reuters reported the offer was "heavily oversubscribed," attracting orders of $7.7 billion.

The government mandated Deutsche Bank AG, Citigroup Inc, Credit Suisse Group AG, Goldman Sachs Group Inc, HSBC, JP Morgan Chase, Standard Chartered Plc and UBS AG as joint bookrunners for the bond offer. - With Reuters, ANC