Philippines Taps Citibank and Deutsche Bank to Market $500 Million Bond Offering

Strategic Insights -

The Philippine government has announced the launch of a global bond offering, with Citibank and Deutsche Bank serving as marketing agents. The government aims to raise at least $500 million through the sale of 10-year international bonds, denominated in Philippine pesos. The proceeds from the bond sale will be used to plug the country's budget deficit and finance infrastructure projects.

Key Takeaways:

  • The Philippine government has tapped Citibank and Deutsche Bank as marketing agents for its global bond offering.
  • The government aims to raise at least $500 million through the sale of 10-year international bonds, denominated in Philippine pesos.
  • The proceeds from the bond sale will be used to plug the country's budget deficit, which is projected to be 325 billion pesos (approximately $7.3 billion) this year.
  • The bond sale will also finance infrastructure projects, including transportation and education initiatives.
  • Moody's Investor Service has assigned a Ba3 rating to the global peso bonds, recognizing the country's resilient external sector and stable financial system.
  • Standard and Poor's has rated the global bonds BB minus, based on the country's steady economic growth over the past 10 years.
  • The bond issuance marks a significant milestone for the Philippines, which is Asia's largest sovereign issuer of foreign currency debt.
  • The government has also cited Credit Suisse, Goldman Sachs (Asia), HSBC, and JP Morgan as joint book runners for the bond sale.

Statistics:

  • The Philippine government aims to raise at least $500 million through the sale of 10-year international bonds.
  • The proceeds from the bond sale will be used to plug the country's budget deficit, which is projected to be 325 billion pesos (approximately $7.3 billion) this year.
  • Moody's Investor Service has assigned a Ba3 rating to the global peso bonds.
  • Standard and Poor's has rated the global bonds BB minus.
  • The bond issuance marks a significant milestone for the Philippines, which is Asia's largest sovereign issuer of foreign currency debt.

Sources:

  • "Manila, Sep 09, 2010 (Xinhua via COMTEX) --"
  • "[Copyright 2010 XINHUA NEWS AGENCY]"
  • "As of Sunday, 09-05-2010 23:59, the latest Comtex SmarTrendAlert indicated a DOWNTREND on 08-12-2010 for DB @ $67.71."
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  • Moody's Investor Service - Ba3 rating assignment
  • Standard and Poor's - BB minus rating assignment