SOURCE: Republic of the Philippines

September 29, 2010 14:27 ET

The Republic of the Philippines Announces the Pricing of Its Global Bond Offering

MANILA, THE PHILIPPINES--(Marketwire - September 29, 2010) -  The Republic of the Philippines (the "Republic") announced today the pricing of its invitation (the "invitation") to the holders of its 8.375% Bonds due 2011 ("2011 Bonds"), 9.0% Bonds due 2013 ("2013 Bonds"), 8.25% Bonds due 2014 ("2014 Bonds"), 8.875% Bonds due 2015 ("2015 Bonds"), 8.0% Bonds due January 2016 ("January 2016 Bonds"), 8.75% Bonds due October 2016 ("October 2016 Bonds") and 9.375% Bonds due 2017 ("2017 Bonds," and together with the 2011 Bonds, 2013 Bonds, 2014 Bonds, 2015 Bonds, January 2016 Bonds and October 2016 Bonds, the "Group A Bonds") to submit offers to exchange each series of Group A Bonds for newly issued U.S. dollar-denominated Global Bonds due 2021 ("New 2021 Bonds") or reopened 6.375% Global Bonds due 2034 ("Reopened 2034 Bonds"), and to the holders of its 9.875% Bonds due January 2019 ("January 2019 Bonds"), 8.375% Bonds due June 2019 ("June 2019 Bonds"), 7.5% Bonds due September 2024 ("September 2024 Bonds"), 9.5% Bonds due October 2024 ("October 2024 Bonds"), 10.625% Bonds due 2025 ("2025 Bonds"), 9.5% Bonds due 2030 ("2030 Bonds") and 7.75% Bonds due 2031 ("2031 Bonds," and together with the January 2019 Bonds, June 2019 Bonds, September 2024 Bonds, October 2024 Bonds, 2025 Bonds and 2030 Bond, the "Group B Bonds") to submit offers to exchange Group B Bonds for Reopened 2034 Bonds. The Group A Bonds and Group B Bonds are collectively referred to as the "old bonds," and the New 2021 Bonds and the Reopened 2034 Bonds are collectively referred to as the "new global bonds." 

The Republic also announced that it will issue $200,000,000 in aggregate principal amount of New 2021 Bonds for cash (the "cash offering" and, together with the invitation, the "global bond offering").

The global bond offering commenced on September 20, 2010, on the terms and subject to the conditions described in the prospectus supplement dated September 20, 2010 (the "prospectus supplement") and the accompanying prospectus dated December 23, 2009 (the "prospectus"). On September 27, 2010, the Republic announced the indicative new issue spread for the New 2021 Bonds of 1.55% and the indicative reopening spread for the Reopened 2034 Bonds of 1.60% and provided information in respect of certain recent developments in the Republic. The invitation expired at 5:00 P.M., New York City time, on September 28, 2010. The scheduled settlement date for the global bond offering is October 6, 2010 (the "settlement date").

Capitalized terms used but not defined in the announcement have the meanings assigned to them in the prospectus supplement.

The securities codes for the old bonds are:

Series   ISIN   CUSIP   Maturity Date
             
Group A Bonds            
8.375% Bonds due 2/15/2011 ("2011 Bonds")   US718286AV96   718286AV9   February 15, 2011
9.000% Bonds due 2/15/2013 ("2013 Bonds")   US718286AT41   718286AT4   February 15, 2013
8.250% Bonds due 1/15/2014 ("2014 Bonds")   US718286AU14   718286AU1   January 15, 2014
8.875% Bonds due 3/17/2015 ("2015 Bonds")   US718286AW79   718286AW7   March 17, 2015
8.000% Bonds due 1/15/2016 ("January 2016 Bonds")   US718286BA41   718286BA4   January 15, 2016
8.750% Bonds due 10/7/2016 ("October 2016 Bonds")   US718286AC16(1)   718286AC1(3)   October 7, 2016
    USY6972CAJ63(2)        
9.375% Bonds due 1/18/2017 ("2017 Bonds")   US718286AQ02   718286AQ0   January 18, 2017
Group B Bonds            
9.875% Bonds due 1/15/2019 ("January 2019 Bonds")   US718286AK32   718286AK3   January 15, 2019
8.375% Bonds due 6/17/2019 ("June 2019 Bonds")   US718286BE62   718286BE6   June 17, 2019
7.500% Bonds due 9/25/2024 ("September 2024 Bonds")   US718286BC07   718286BC0   September 25, 2024
9.500% Bonds due 10/21/2024 ("October 2024 Bonds")   US718286AL15   718286AL1   October 21, 2024
10.625% Bonds due 3/16/2025 ("2025 Bonds")   US718286AP29   718286AP2   March 16, 2025
9.500% Bonds due 2/2/2030 ("2030 Bonds")   US718286AY36   718286AY3   February 2, 2030
7.750% Bonds due 1/14/2031 ("2031 Bonds")   US718286BB24   718286BB2   January 14, 2031
             
(1) ISIN corresponding to restricted global bonds of this series.     
(2) ISIN corresponding to Regulation S global bonds of this series.      
(3) CUSIP corresponding to restricted global bonds of this series.      

I. New Global Bond Terms

The New 2021 Bonds issued pursuant to the global bond offering will have the following terms:

  • Coupon: 4.000%

  • Final Maturity Date: January 15, 2021

  • Reference Yield: 2.541%

  • New Issue Spread: 1.55%

  • New Issue Yield: 4.091%

  • New Issue Price per $1,000 in principal amount: $992.48

The New 2021 Bonds will have a short first coupon, the first interest payment will be made on January 15, 2011, in respect of the period from (and including) the settlement date to (but excluding) January 15, 2011.

The Reopened 2034 Bonds issued pursuant to the global bond offering will have the following terms:

  • Coupon: 6.375%

  • Final Maturity Date: October 23, 2034

  • Reference Yield: 3.676%

  • Reopening Spread: 1.60%

  • Reopening Yield: 5.276%

  • Reopening Price per $1,000 in principal amount: $1,148.79

The Reopened 2034 Bonds will have a short first coupon, the first interest payment will be made on October 23, 2010, in respect of the period from (and including) the settlement date to (but excluding) October 23, 2010, and will be payable to the persons who are registered holders of the Reopened 2034 Bonds at the close of business on the settlement date.

The Reopened 2034 Bonds constitute a further issuance of, and on October 24, 2010 will become fungible with and be consolidated and form a single series with, the 6.375% Global Bonds due 2034 issued by the Republic on October 23, 2009 in the amount of $1,000,000,000 and reopened on January 13, 2010, in the amount of $850,000,000. Prior to October 24, 2010 the Reopened 2034 Bonds will bear different securities codes and trade separately from those previously issued 6.375% Global Bonds due 2034. Upon issuance, the Reopened 2034 Bonds will rank pari passu with the previously issued 6.375% Global Bonds due 2034 in all respects.

II. Reference Yield for each series of the Old Bonds 

Series   Reference Yield (%)
     
Group A Bonds    
2011 Bonds   0.349
2013 Bonds   0.690
2014 Bonds   0.940
2015 Bonds   1.304
January 2016 Bonds   1.559
October 2016 Bonds   1.767
2017 Bonds   1.836
     
Group B Bonds    
January 2019 Bonds   5.276
June 2019 Bonds   5.276
September 2024 Bonds   5.276
October 2024 Bonds   5.276
2025 Bonds   5.276
2030 Bonds   5.276
2031 Bonds   5.276

As described in the prospectus supplement, the Republic expects to make another announcement later today with additional information about the results of the invitation.

Application has been made to admit the new global bonds to listing on the Official List of the Luxembourg Stock Exchange and to trading on the EuroMTF Market. The Republic cannot guarantee that the application to the Luxembourg Stock Exchange will be approved and settlement of the new global bonds is not conditioned on obtaining the listings.

The invitation was made solely pursuant to the prospectus supplement and the prospectus. The prospectus and the prospectus supplement may be accessed through the following hyperlink: http://www.sec.gov/Archives/edgar/data/1030717/000119312510212607/d424b3.htm

The Republic has filed a registration statement (including the prospectus) and the prospectus supplement with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement (file no. 333-163671), the prospectus supplement filed pursuant to such registration statement, and other documents that the Republic has filed with the SEC for more complete information about the Republic and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the Republic, the joint dealer managers, or the information and exchange agent will arrange to send you the prospectus supplement and the prospectus if you request them by calling any of Citigroup Global Markets Inc. toll-free (in the U.S.) at (800) 558-3745, The Hongkong and Shanghai Banking Corporation Limited toll-free (in the U.S.) at (888) 472-2456, UBS AG toll-free (in the U.S.) at (888) 719-4210 and the information and exchange agent Bondholder Communications Group, LLC at (UK) +44 (0) 207 382 4580, (US) +1 (212) 809 2663 or toll free (in the U.S.) at +1 (888) 385 2663, or you may download the prospectus supplement and the prospectus at the invitation website www.bondcom.com/rop.