The Bangko Sentral ng Pilipinas has successfully upsized its US dollar Eurobond issue due November 2005 by an additional US$250 million, bringing the issue size to a total of US$800 million. The additional bonds were priced at 103.25 for a yield of 7.99% significantly lower than the initial issuance yield of 9%. The additional amount was raised through JP Morgan Chase which had underwritten the initial issue.
The BSP was opportunistic in its latest fund raising and was able to raise the additional funds at very attractive yields, taking advantage of the positive investor sentiment towards the Philippines. BSP Governor Rafael B. Buenaventura said that the demand for the bonds leading to the upsized amount, reflects the continued investor confidence in the BSP and the improving economic outlook on the Philippines. With the amount increased to US$800 million, the BSP bond is now one of the more liquid Asian bonds and is part of several international bond indices.