NEWSFLASH

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RP GLOBAL BONDS OVER-SUBSCRIBED

Malacanang, April 7, 1998 - Finance Secretary Salvador Enrique told President Ramos that the flotation of $500 million 10-year Philippine Global Bonds were over-subscribed during its April 2 launching.

Enriquez said investors' enthusiasm reflects their continued confidence in the country's economy.

"This is good news, probable credit rating upgrade for our financial and banking institutions and the economy as a whole," President Ramos said.

In a memorandum to the President, Enriquez said the bonds, priced at 337.5 basis points above the 10-year US treasuries, compared favorably with a similar issue launched by Brazil, which is now trading at 385 basis points.

He also said the Philippine bonds issue is expected to be better priced than a forthcoming issue by South Korea.

Enriquez said the bond issue is significant because it made the Philippines the first Asian country to access the voluntary capital market after the eruption of the currency turmoil in the region.

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