The Philippines: Telling a new story

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The Philippines: Telling a new story

The Philippines began to woo a new set of investors in February with the launch of a euro-denominated bond. The issue is not without its critics and it was made amid mixed reviews from bankers of the country's efforts to pull itself out of the Asian crisis. Gill Baker reports.

"Differentiation" was a much-used word as investment bankers pitched the Philippines story to European investors in February. The marketing-speak succeeded in placing $350 million of Republic of the Philippines bonds, giving the country the distinction of being the first Asian sovereign to issue a euro-denominated bond.

Investors still required a fair bit of convincing, though - and a pretty attractive spread - to take on the sub-investment-grade paper. Much of the sales pitch was an education process for investors unfamiliar with the Philippines credit, said bankers close to the deal, but nevertheless there are plenty of pointers that the republic has managed to buck the trends of the rest of region and really does have its own story to tell.

"The Philippines is one of the countries in the region that did not go down to the low points that other countries did," says a Hong Kong-based investment banker. "It was the only country that has not been downgraded, and much of Asia had a lot further to fall."

However it is perhaps a sign of an economy that's past the worst when analysts and bankers offer such a diverse range of views on the state of the country.

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