RP plans first euro bond

RP plans first euro bond

LONDON (Reuters): The Philippines is set to become the first
Asian sovereign to issue bonds denominated in the future single
European currency, the euro, after Finance Secretary Edgardo
Espirito announced a mandate for the deal yesterday.

Espirito said JP Morgan and Warburg Dillon Read had been
appointed to lead manage a euro-denominated bond for launch in
the Autumn. The fixed-rate transaction will be issued in tandem
with a dollar floating-rate note to be lead-managed by Goldman
Sachs.

Together, the two deals will total at least US$500 million,
Espirito said. He did not give any further details, but bond
underwriters in London said they expected a five to seven year
maturity.

Only one other Asian credit has tapped the euro sector to
date. Japan Export-Import Bank sold 500 million euro of five-year
bonds with a 4.625 percent coupon via lead manager Paribas on
July 1.