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.