Philippines achieves record low coupon

Declining Treasury yields allow the Republic to lock in low cost borrowing despite wide spread levels.

With a final order book just north of $500 million, lead manager ING Bank successfully upsized a $200 million transaction for the Republic of the Philippines yesterday Thursday. Raising a total of $300 million, the five-year fixed rate deal was priced at 99.794% with a record low coupon of 7.5% and re-offer yield of 7.55% equating to 458bp over Treasuries.

After its two large benchmark offerings earlier this year, the new deal sees the Philippines revert to 2001's strategy of taking advantage of market windows to launch small-sized deals that fit its budgetary requirements at times of unfavourable spread levels. Winning the deal also marks a great coup for...

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