WASHINGTON, D.C., Mar. 12—On March 10, 1997, the International Finance Corporation (IFC) launched a Philippine peso (PHP) bond issue for the amount of PHP 2.6 billion (approximately US$98 million equivalent), under the IFC’s Global Medium Term Note program. This transaction, IFC’s debut Philippine peso issue, is also the first Europeso issue launched in the international capital markets. The 5-year notes carry an semi-annual coupon of 10.25 percent per annum and were issued at a price of 100.00 percent of par. The proceeds of the issue will be swapped into U.S. dollar floating-rate funds.
The lead manager of the issue is Citicorp International Ltd, Hong Kong, with underwriting support from five co-lead managers and four co-managers. The issue is expected to be placed with investors in Asia, United States and Europe, with a predominant demand in Asia.
This transaction brings IFC’s market borrowings to about US$3,184 billion for the fiscal year 1997 which, began on July 1, 1996.
IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector companies in developing countries. Its long-term debt is rated triple A by both Standard & Poor’s Corp. and Moody’s Investors Service.
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