The sovereignÆs bankers û Citigroup, Credit Suisse and Deutsche Bank û hit the road with pricing guidance at 6.55% - 6.65% for the SEC-registered deal and eventually printed a coupon of 6.375%, priced at 97.862 to yield 6.55%. That is equivalent to 180.3bp over US treasuries.
This is the lowest coupon ever for a US dollar benchmark from the Philippines. With the 2031 bonds trading at 113.75% (to yield 6.601%) and 114 (6.58%) the leads succeeded in pricing the deal through the yield curve.
Needless to say, such favourable pricing was achieved thanks to huge investor interest. Open for just seven hours, the final book closed with substantial over-subscription; a total of $9.6 billion in orders from 270 accounts. Last summerÆs dual-tranche 2031/2016 offer is the only Philippines deal to have attracted more interest.
The orders were split 57:23:20 between Asia, Europe and the US, with final allocations at 45:24:31. By account type, the book was divided 41:53:6 between banks, asset managers and retail/others, with final allocations at 25:65:10.
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