May 9, 2019 / 10:20 AM / 2 months ago

Philippines begins book-building for 8-year euro bond issue

MANILA, May 9 (Reuters) - The Philippines has begun marketing a euro-denominated eight-year bond, National Treasurer Rosalia de Leon said on Thursday, confirming an initial price guidance at the “mid-swaps plus 90 to 100 basis points area”, as reported by Refinitiv IFR.

The Southeast Asian nation is looking at a “benchmark” issue, she said, which typically involves raising at least $500 million.

The book-building exercise comes just days after Standard & Poor’s raised the Philippines’ credit rating to BBB+, from BBB, with a stable outlook, the highest the Philippines has achieved.

Deutsche Bank and UBS have been hired as joint global coordinators. They are also joint bookrunners with BNP Paribas, Credit Suisse and Standard Chartered.

The planned issue is the first the Philippines is doing in euros since 1999, when it did a 250 million euros ($280 million at present) 5.5-year issue that paid 425 basis points over bunds, according to Refinitive IFR.

The Philippines, one of Asia’s most active sovereign bond issuers, is raising funds to help finance its 3.7 trillion pesos ($70.90 billion) budget this year.

The fund-raising programme includes 6 billion yuan ($879.4 million) from a planned second offering of panda bonds in China.

($1 = 52.1830 Philippine pesos)

($1 = 6.8228 Chinese yuan)

Reporting by Enrico dela Cruz; Editing by Richard Borsuk

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