DEAL OF THE YEAR: Euromoney cites Phl Nov global bond issue

MANILA, Philippines - Euromoney, the world’s leading financial markets magazine, has cited the Philippines’ November global peso bond issue as one of 2012’s  “Deals of the Year”.

The Philippines returned to the international capital markets with a P30.8 billion ($750 million) offering of 10-year global peso bonds priced at 100 percent with a coupon of 3.9 percent.

Finance Secretary Cesar Purisima  said the recognition is a “continued proof that the country is one of the safest emerging markets to invest in.”

“We welcome this award as another vote of confidence in the Aquino administration’s good governance reforms, and a continued nod at the effectiveness of our proactive liability management agenda.” Purisima added.

Other deals that were hailed by Euromoney included those of IG, Sinopec, Genting Singapore, Takeda Pharmaceutical, PICC Group, and IHH Healthcare.

Euromoney noted that global capital markets underwent a remarkable recovery last year as bond and equity markets soared, creating a fertile deal-making environment that few had foreseen at the start of the year. By the end, an impressive volume and variety of capital raising activities had hit the markets, highlighting a voracious appetite for risk and complexity that bankers were only too happy to satisfy.

The global peso bond offering is part of the government’s proactive efforts in managing external liabilities as the exercise reduces the foreign exchange risk inherent in the Republic’s outstanding debt portfolio.

Proceeds from the bond sale were used to fund the country’s  ongoing tender offer of its existing US dollar and Euro-denominated bonds. The government may also use the proceeds for general purposes, including budgetary support.

National Treasurer Rosalia de Leon said that positive investor perception of the Philippine credit allowed the country to achieve the objective of redenominating debt into local currency.

The deals of the year are selected by Euromoney’s team of journalists looking for trades that defined the market during a challenging yet broadly year for the capital markets.