LONDON, Jan 6 (IFR) - The Republic of Philippines has launched a US$2bn 25-year bond at a yield of 3.95%, according to a lead manager.
That is the tight end of final guidance of 4% (plus or minus 5bp) and 25bp inside initial price thoughts of 4.20% area.
The SEC-registered note is being issued to fund the purchase of 15 of the sovereign's securities in a deal that is aimed at helping the Philippines manage its foreign currency liabilities.
Investors in the outstanding bonds can either switch their holdings into the new note or accept cash.
The Philippines is rated Baa2 by Moody's, BBB by Standard & Poor's and BBB- by Fitch.
Deutsche Bank and HSBC are joint global coordinators, and are also joint bookrunners alongside Citigroup, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, Standard Chartered and UBS.
The deal is expected to price later today. (Reporting by Sudip Roy, editing by Julian Baker)