RP sells US$500m global bonds<\/p>\n
MANILA: The Philippines said on Thursday it sold US$500
\nmillion in 11-year global bonds to finance government operations.<\/p>\n
The issue, which matures in March 2015, was priced to offer
\ninvestors a yield of 9.0 percent. HSBC, Credit Suisse First
\nBoston and UBS sold the securities.<\/p>\n
Standard and Poor's Ratings Services has assigned a BB debt
\nrating on the bond issue.<\/p>\n
It said the Philippines had adequate external liquidity, with
\ntotal debt servicing projected at 37 percent of current account
\nreceipts this year -- similar to that of countries at a similar
\nstage of development.<\/p>\n
However, it said there was major concern over the budget
\ndeficit and growing dependence on foreign debt. The Philippines
\nis the second largest Asian foreign borrower in the international
\ncapital markets, next only to Japan.<\/p>\n
The government's remaining external financing requirement for
\nthis year stands at about $680 million. Standard and Poor's said
\nManila had to rely on the international markets because of its
\nnarrow tax base and shallow capital markets.<\/p>\n
The Philippines has set a budget deficit ceiling of 197.8
\nbillion pesos equal to 4.2 percent of gross domestic product this
\nyear. -- AFP<\/p>",
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