Philippines prices global peso note inside onshore curve

The Republic of the Philippines tapped the market late last week with its third global peso bond, raising Ps30.8 billion $750 million. The bond is peso-denominated but settled in US dollars, so investors are exposed to a weakening in the peso’s value.

The Philippines has been trying to lower its proportion of dollar-denominated debt for some time and will use the proceeds of its global peso note to repay expensive dollar and euro-denominated debt, particularly short-dated bonds with higher coupons.

The deal marked the Philippines’ return to the global peso market after an absence of nearly two years. Back in 2011, its global...