Best sovereign borrower – Asia

Republic of the Philippines

Philippines 2030 bond Spread over US Treasuries

The Philippines has become accustomed to being Asia’s odd man out: sidelined from a rampant economic recovery and saddled with economic challenges and a fiscal straitjacket that are a distant memory for its regional neighbours. Indeed, borrowing in the debt capital markets has been straightforward for other Asian sovereigns over the past 12 months, with vast liquidity driving a strong appetite for Asian risk. But while other Asian sovereign issuers tapped the markets very successfully during the period, most notably perhaps, China, with a €1 billion deal in October 2004, the Philippines just muddled through.