Switched on! Philippines pushes out curve

The Southeast Asian country became the second sovereign to issue a dollar bond this year, swapping 14 old bonds for a new 25-year note.

The Republic of the Philippines priced a $2 billion 25-year bond on Thursday morning, taking a proactive approach to lower its dollar funding cost amid widespread expectations of US interest rate hikes later in the year.

The consensus view among analysts is that the US Federal Reserve will have three quarter-point increases for 2017. That is up from two 25bp hikes in the past two years, and has prompted Asian issuers in the dollar market to raise funds or refinance their debt early.

Few issuers can do that with such flexibility as the Philippines. As part of the country's liability management programme, the Baa2BBBBBB...

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