Manila, Feb. 8 -- The Asian Development Bank (ADB) has raised PHP5.2204 billion (USD100 million) from a new issue of local currency bonds in the international market.
In a statement Friday, the ADB issued bonds in the Philippine domestic capital market in 2005 and 2007 but the day's issue is the first time it has mobilized Philippine peso funding from international investors through a currency-linked structure.
Currency-linked bonds are denominated in the local currency but settled in US dollars. The bonds pay a fixed interest rate of 5.25 percent and have a final maturity of four years.
The proceeds of the bonds will support ADB's growing local currency operations in the Philippines and help reduce foreign exchange risk for ADB's borrow...