Rating: B1/BB-/BB Amount: $1bn Maturity: 15 January 2032 Coupon: 6.375% Issue/re-offer price: 97.862 Spread at re-offer: 180.3bp over 4.5% February 2036 UST Payment date: 17 January Joint books: Citigroup, Credit Suisse, Deutsche Bank, Market appraisal: "... the Philippines did exactly the right deal at the right time and did it very efficiently." "...now the Philippines is down to doing one deal a year it is no longer able to spread mandates around and is in danger of using only three houses. Once it is seen as a captive issuer, the way other banks pitch for deals will change and that would not necessarily benefit the issuer." "...it sold off a little in secondary trading. That was more a function of the whole market weakening, but it shows they left nothing on the table." "...given that Asia was trading wider on Tuesday as a result of all the noise about Thailand and then the news out of Venezuela, this has held its value extremely well." "...the Philippines has such a strong track record of bringing good deals at the start of the year that it's almost getting a bit boring. The issuer is smart and knows exactly when to tap the market and the right deal to print." "... it's a fair price but not spectacular. Given that the Philippines is only doing one deal this year they definitely could have squeezed this tighter, and the huge oversubscription shows that the market agreed." "...with $10bn of demand the bonds should really be doing better than they are, even if the market is a little weaker. Usually the Philippines comes a little cheap to market and performs well, but it was clearly pushed this time. A price flat to the 2031s would have been fairer."
January 12, 2007
