MANILA - The Philippines sold $750 million of its second global bond this year in an offer that was nearly six times oversubscribed and will cover the rest of its 2009 borrowing needs locally, a senior official said on Tuesday.

Following the successful bond issue, Manila needs to raise just around $250 million in on top of its programmed debt issues this year.

"We'll raise that from the domestic market, mainly through the regular (Treasury) auctions," National Treasurer Roberto Tan told Reuters.

The government, one of Asia's most active sovereign debt issuers, sold global bonds due January 2020 on Tuesday to partly finance a record budget deficit this year. The issue was priced at 99.065 to yield 6.625% or 332.6 basis points over comparable US Treasuries.

The actual yield was at the low end of the indicative yield of 6.625% to 6.75%.

"We are very pleased with the results of the transaction, it represents the lowest yield we have ever achieved in a 10-year benchmark US$ global offering," Tan said in a statement.

The bulk of the offer, or 60%, was sold to Asian investors, 25% went to US investors and the remaining 15% was taken up by investors from Europe, the statement also said.

Joint lead managers and book-runners were Citigroup, Credit Suisse and Deutsche Bank. The issue was rated BB minus by Standard & Poor's and B1 by Moody's Investors Service.

In January, the Philippines raised $1.5 billion worth of 10-year dollar bonds. At that time, it said the issue would be its last this year.

The Southeast Asian country, grappling with a slowing economy, rampant tax evasion and corruption, slashed its 2009 revenue target by around P52 billion but raised its total borrowings by the same amount to make up for the revenue gap.

It expects its 2009 budget deficit to swell to a record P250 billion, or 3.2 percent of gross domestic product, as weak revenues fail to keep pace with higher spending to stimulate the economy.

Manila also obtained a guarantee from the Japan Bank for International Cooperation (JBIC) for up to $1 billion in Samurai bonds within two years to help fund its fiscal shortfall.

Rosalia de Leon, head of the Finance department's international finance group, said on Tuesday the Samurai bond remains an option and could be tapped for pre-funding Manila's 2010 borrowing needs if the government settles some outstanding issues.

The government has requested JBIC to reduce a guarantee fee on the yen bond offer to make it a more cheaper funding source for the debt-laden country.