Philippines raises $1.3 bln from euro bond issue, including 1st ever zero-coupon deal

MANILA, Jan 22 (Reuters) - The Philippines raised 1.2 billion euros ($1.33 billion) from the capital market by selling its first ever zero coupon three-year euro-denominated bond and securing the lowest coupon ever for a nine-year deal, its finance secretary said on Wednesday.

The three-year and nine-year issues, which follow a similar offering in May, was nearly four times oversubscribed, Carlos Dominguez said, citing a report from the Bureau of Treasury.

Dominguez said the three-year euro bond had a coupon of 0% and offers 40 basis points over benchmark, while the nine-year bond’s 0.75% coupon was tighter than on the Philippines’ existing euro bonds due 2027, which pay out 0.875%.

UBS, Citigroup, Standard Chartered, and Credit Suisse were joint lead managers and joint bookrunners.

Orders came from a diverse group of investors both in the onshore and offshore market, he said.

The Philippines, one of Asia’s most active sovereign bond issuers, is raising funds to help finance its 4.1 trillion pesos ($80.39 billion) budget this year, which is 12% more than last year’s spending plan. ($1 = 0.9021 euros) ($1 = 51.0000 Philippine pesos) (Reporting by Karen Lema; Editing by Himani Sarkar)