The Philippines cuts costs with $2b bond

The Southeast Asian country is the first sovereign to sell a dollar bond this year, swapping its old notes with new ones as Treasury yields drop to a 1.5-year low.

The Republic of the Philippines priced a $2 billion 25-year offering early on Wednesday morning the first Asian sovereign to do so in 2015 beating Indonesia to it as Treasury yields continue to hover at low levels.

ROP priced its US SEC-registered bond at a yield of 3.95%, around 25bp tighter than its initial price guidance area, according to a term sheet seen by FinanceAsia.

As part of the country’s liability management programme, the note comes with a switch tender offer. This is where the ROP offers to buy back a series of existing bonds at a specified bid price and replace them...

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