BSP increases bond (again)

For the second time since it launched a $350 million deal in late October, the Philippines central back has returned to the international bond markets, increasing the original transaction to $550 million.

Taking advantage of the momentum in the credit markets and a strong retail bid, the Bangko Sentral ng Pilipinas BSP added another $150 million to its 9% November 2005 transaction yesterday Monday. With JPMorgan as sole lead manager, the BBBa1-rated credit priced the new line at 100.125% to yield 8.96% or 480bp over Treasuries.

The key to the success of the overall deal is that the BSP has achieved risk free execution, one banker comments. With the minimum of noise and fuss, it has created a liquid emerging market benchmark. Now that the transaction tops the $500 million mark, it also becomes eligible for the MB index.

Against the interpolated...

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