News Update PHL starts selling 25-yr., US dollar bonds

The Philippines on Wednesday started selling 25-year US dollar bonds to finance its infrastructure projects this year. According to Finance Undersecretary Rosalia de Leon, the offering is of “benchmark size.” National Treasurer Roberto Tan said Tuesday government intends to sell $500 million to $1.5 billion in global bonds. The Aquino administration needs to spend P500 million for infrastructure development to achieve a 5-percent to 6-percent economic growth this year, said former Budget Secretary Benjamin Diokno Hired to sell the bonds were Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC, JP Morgan Chase, Standard Chartered Plc. and UBS AG, according to a Department of Finance statement Wednesday. Government emphasized in a presentation released by Bangko Sentral ng Pilipinas Investor Relations Office that the Philippines has a strong points as a global bond issuer, including “a strong domestic consumer base, effective monetary policy, strong external payments position, prudent fiscal management, stable banking system and a reform minded administration.” In an emailed statement Wednesday, Fitch Ratings noted it “has assigned the Republic of the Philippines' upcoming USD-denominated global bonds due 2037 an expected 'BB+' rating.” “The final rating is contingent on the receipt of final documentation conforming to information already received,” Fitch added. — VS,v>