Philippines reprices bond curve with benchmark switch

By Steven Gilmore
10 Jan 2014

The Republic of the Philippines sold a hugely successful $1.5bn 10 year transaction on Thursday, January 9, switching existing investors out of $1bn of more costly dollar debt and into the new bond. Massive oversubscription enabled the borrower to price the new notes with a negative new issue premium in an exercise that completely repriced the sovereign’s curve, said a banker involved in the sale.

Bookrunners ANZ, Citi, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and Standard Chartered Bank priced the deal at 4.2% after receiving $13.5bn from around 500 accounts. Around $10bn of the orderbook was new money and $3bn was existing bondholders wanting to take advantage of the exchange ...

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