Deutsche Bank leads in offshore bond issuance

Deutsche Bank AG is the current leader for offshore bond issuers, having completed its seventh offshore bond market deal this year.

Deutsche Bank was one of the lead arrangers for the 10-year global bond offering of the National Power Corp. (Napocor) raising $500 million. The transaction priced at par with a coupon of 6.875 percent, the lowest coupon for a Philippine dollar bond issue.

Deutsche Bank AG Manila chief country officer Enrico Cruz said the joint effort and cooperation involved: the Power Sector Assets and Liabilities Management (PSALM), the Department of Finance (DOF), and Napocor.

"The coordination and professionalism of all the parties involved, including the Bangko Sentral ng Pilipinas and the Department of Justice, was critical to the execution of this international offering," said Cruz.

This deal is the third Philippine international bond offering that Deutsche Bank has executed in the last three months.

Last month, Deutsche Bank acted as the sole bookrunner for $150 million lower Tier 2 subordinated debt issue of the Land Bank of the Philippines.

In September, the bank led the $130-million hybrid Tier 1 offering of the Development Bank of the Philippines. This was the first international Reg S bond offering to have ever been undertaken by DBP and the second Hybrid Tier 1 ever offered by a Philippine bank.

"These three deals have capitalized on the favorable market for Philippine offshore bonds which has been brought about by general positive investor sentiment, improved economic fundamentals along with the excellent execution of recent ROP bond deals which have been characterized by strong demand, solid order books and tight pricing," Martin Syquia, Deutsche Bank Debt Capital Markets head, said.

Deutsche Bank was also lead manager on the international offerings of the Republic of the Philippines in January and July this year.