Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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February 16, 2010
According to Financial Times, the Philippines will offer samurai bonds with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for short-term, unsecured loans. Samurai bonds are Yen-denominated bonds offered on the Japanese market by non-Japanese entities.
The LIBOR-based bond issue will be $1 billion with proceeds intended to help the Philippines with its budget deficit. Pricing is yet to be determined, but a range of LIBOR plus 85 to 95 basis points is considered likely. This compares to a LIBOR-based samurai bond issue from Rabobank which had pricing of LIBOR plus 35 basis points. The state-owned Japanese Bank for International Cooperation will partially guarantee the Philippines’ LIBOR-based bonds.