Palace lauds successful peso-denominated global bonds sale

September 12, 2010 11:35 pm 

MANILA, Sept. 12 – Malacañang expressed elation over the international community’s favorable reception to the Philippines’ first-ever peso-denominated global bonds sale, which it said shows that confidence in the country remains strong.

“The success of the peso bond float is a quantifiable and real vote of confidence in the country and the government, particularly our economic managers,” President Benigno Simeon Aquino III said in a statement.

The government issued on Friday the 10-year, peso-denominated global bonds priced at 99.607 percent with a coupon of 4.95 percent and a yield of 5 percent.

The sale, which was participated in by a mix of Asian, American and European investors, netted for the country $ 1-billion (P 44.1-billion) after only 16 hours upon its issuance with bids reaching over 13 times the offer.

In an interview aired over dzRB this afternoon, Presidential Communications and Operations Office Secretary Herminio Coloma (PCOO) Hermino Coloma said: “We are ecstatic over the overwhelming reception of our peso-denominated bonds which have posted a record of sorts for having been over-subscribed.”

This, he added, “is a sign that international community confidence in our country, our economy and our President remains high.”

Coloma quoted Finance Secretary Cesar Purisima as saying that the sale was “a landslide vote of confidence for our country.”

In a statement, National Treasurer Roberto B. Tan said the offering would "enhance the government's debt investor profile while paving the way for greater participation by offshore investors in the Philippine capital markets."

He also said that of the total peso-denominated global bonds sold, 37.1 percent was bought by Asian investors, 32.6 percent went to those in the US and 30.3 percent were taken up by Europeans.

The bonds, which are registered with the US Securities and Exchange Commission, are denominated in pesos but will be settled offshore in dollars. (PNA) RMA/PCOO/jsd

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