RP cuts Yankee offering

RP cuts Yankee offering

MANILA (AFP): The Philippines will lower the amount of Yankee bonds that it plans to launch later this year, Central Bank of the Philippines governor Gabriel Singson has said.

Yankee bonds are bonds issued in the United States by foreigners.

Singson said the Philippines would offer less than US$750 million worth instead of the $1.25 million that it originally planned to launch in April.

He told reporters at an informal gathering late Friday that the amount was being lowered because they did not think the market could absorb such a big issue at the time.

Singson also said they would no longer rely on a syndicate to underwrite the bonds but would instead hold an auction among the original syndicate members, Salomon Brothers, Morgan Stanley, JP Morgan, Merrill Lynch, Citibank and ING Barings.