The Republic of the Philippines returned to the international bond markets for the second time this year on Wednesday, raising $500 million from a 10-year global.
Under the lead management of Credit Suisse First Boston, HSBC and UBS, the Ba2BB rated credit priced its deal at 99.138% on a coupon of 8.875% to yield 9%. This equated to 528bp over Treasuries or 487bp over Libor. Fees amounted to just 7bp.
Market participants concluded the deal was well executed and pitched at the right size and right price in the circumstances. But the circumstances were far from ideal.
Deep-rooted concerns about the Philippines' credit profile have once again...
