Republic’s US$500 Million Maiden Onshore Dollar Bond Issuance a Resounding Success

December 3, 2012

The Republic of the Philippines issued 10.5-Year Fixed Rate Onshore Dollar Bonds due 2023. Auction of the bonds on 28 November 2012, which was almost 4 times oversubscribed, fetched a coupon rate of 2.75% per annum. The bonds are slated to be listed in the Philippine Dealing and Exchange Dealing System.

Designed to siphon excess US Dollars in the local banking system, this is the first time the Republic tapped the local debt market by issuing foreign currency debt papers. Proceeds of the bonds will be used to pay maturing foreign currency obligations of the national government and expenditures of the Power Sector Asset & Liabilities Management Corporation.

PJS advised the Republic and a consortium of foreign and local banks on this maiden issuance. The PJS Team led by banking and finance partner Ramil E. Bugayong, includes Joseph Anthony F. Boma and Miguel G. De Jesus.