Obligation Filipinas 4.95% ( US718286BJ59 ) en PHP

Société émettrice Filipinas
Prix sur le marché 100 %  ▲ 
Pays  Philippines
Code ISIN  US718286BJ59 ( en PHP )
Coupon 4.95% par an ( paiement annuel )
Echéance 15/01/2021 - Obligation échue



Prospectus brochure de l'obligation Philippines US718286BJ59 en PHP 4.95%, échue


Montant Minimal 5 000 000 PHP
Montant de l'émission 44 109 000 000 PHP
Cusip 718286BJ5
Description détaillée Les Philippines sont un archipel de plus de 7 000 îles situées en Asie du Sud-Est, connues pour leur biodiversité, leur culture riche et leur histoire coloniale complexe.

L'Obligation émise par Filipinas ( Philippines ) , en PHP, avec le code ISIN US718286BJ59, paye un coupon de 4.95% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 15/01/2021







PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED DECEMBER 23, 2009
P44,109,000,000
Republic of the Philippines
4.95% PHP Global Bonds due 2021
Payable in US dollars
The Republic will pay interest on the global bonds on January 15 and July 15 in each year. The first interest payment on the global
bonds will be made on January 15, 2011 in respect of the period from (and including) September 17, 2010 to (but excluding)
January 15, 2011. Principal and interest will be translated into, and payment of principal and interest will be made in, US dollars.
The Republic may not redeem the global bonds prior to their maturity. The global bonds will mature at par on January 15, 2021.
The global bonds will be designated Collective Action Securities, and, as such, will contain provisions regarding certain aspects of
default, acceleration, voting on amendments, modifications, changes, waivers and future issues of global bonds that differ from those
applicable to most of the Republic's outstanding External Public Indebtedness. Under these provisions, which are described in the
section entitled "Collective Action Securities" on page 113 of the attached prospectus dated December 23, 2009, the Republic may,
among other things, amend the payment provisions of the global bonds and certain other material terms with the consent of the
holders of not less than 75% of the aggregate principal amount of the outstanding global bonds.
The offering of the global bonds is conditional on the receipt of certain approvals of the Monetary Board of the Bangko Sentral ng
Pilipinas, the central bank of the Republic.
The global bonds are being offered globally for sale in the jurisdictions where it is lawful to make such offers and sales. Application
has been made to admit the global bonds to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Euro MTF Market ("Euro MTF"). We cannot guarantee that the application to the Luxembourg Stock Exchange will be approved
and settlement of the global bonds is not conditional on obtaining the listing.
We expect to deliver the global bonds to investors in registered book-entry form only through the facilities of The Depository Trust
Company, Clearstream Banking, société anonyme, and Euroclear Bank, S.A./N.V., on or about September 17, 2010.
Investing in the global bonds involves risks. See, especially, "Investment Considerations" on page S-10 of this prospectus
supplement.
Per Bond in US
Per Bond
Dollars(2)
Total
Price to investors(1) . . . . . . . . . . . . . . . . . . . . . .
99.607% US$112,910.064
US$996,070,000
Underwriting discounts and commissions . . . .
0.050% US$
56.678
US$
500,000
Proceeds, before expenses, to the Republic . . .
99.557% US$112,853.386
US$995,570,000
(1) Investors will make the payment of the issue price in US dollars based on an exchange rate for the conversion of Philippine pesos into US
dollars of P44.109 Per US$1.00. The minimum denomination per bond is P5,000,000 and global bonds will be issued in integral multiples of
P1,000,000 in excess thereof.
(2) For purposes of per bond calculations, a global bond of P5,000,000 has been used.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these
securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
Joint Global Coordinators
Citi
Deutsche Bank Securities
Joint Lead Managers and Joint Bookrunners
Citi
Credit Suisse
Deutsche Bank Securities
Goldman Sachs (Asia) L.L.C.
HSBC
J.P. Morgan
The date of this prospectus supplement is September 9, 2010


[THIS PAGE INTENTIONALLY LEFT BLANK]
S-2


TABLE OF CONTENTS
Prospectus Supplement
Pages
Prospectus
Pages
Introductory Statements . . . . . . . . . . . . . . . . . . .
S-4
Certain Defined Terms and Conventions . .
iii
Summary of the Offering . . . . . . . . . . . . . . . . . .
S-6
Forward-Looking Statements . . . . . . . . . . .
iii
Investment Considerations . . . . . . . . . . . . . . . . .
S-10
Data Dissemination . . . . . . . . . . . . . . . . . . .
iv
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . .
S-11
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . .
iv
Recent Developments . . . . . . . . . . . . . . . . . . . . .
S-12
Prospectus Summary . . . . . . . . . . . . . . . . . .
1
Description of the Global Bonds . . . . . . . . . . . . .
S-26
Republic of the Philippines . . . . . . . . . . . . .
7
Global Clearance and Settlement . . . . . . . . . . . .
S-30
Description of the Securities . . . . . . . . . . . .
101
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-33
Collective Action Securities . . . . . . . . . . . .
113
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-36
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-40
Plan of Distribution . . . . . . . . . . . . . . . . . . .
125
General Information . . . . . . . . . . . . . . . . . . . . . .
S-40
Validity of the Securities . . . . . . . . . . . . . . .
126
Authorized Representative in the United
States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126
Experts; Official Statements and
Documents . . . . . . . . . . . . . . . . . . . . . . . . . .
126
Further Information . . . . . . . . . . . . . . . . . . .
126
Debt Tables of the Republic of the
Philippines . . . . . . . . . . . . . . . . . . . . . . . . . .
T-1
S-3


You should read this prospectus supplement along with the attached prospectus that accompanies it.
You should rely only on the information contained or incorporated by reference in this document and the
accompanying prospectus or to which we have referred you. We have not authorized anyone to provide
you with information that is different. This document may only be used where it is legal to sell these
securities. This document and the attached prospectus may only be used for the purposes for which they
have been published. The information in this prospectus supplement and the accompanying prospectus
may only be accurate as of the date of this prospectus supplement or the accompanying prospectus, as
applicable. Terms used herein but not otherwise defined shall have the meaning given to them in the
prospectus that accompanies this prospectus supplement.
INTRODUCTORY STATEMENTS
The Republic accepts responsibility for the information that is contained in this prospectus supplement and
the prospectus that accompanies it. To the best of the knowledge and belief of the Republic (which has taken all
reasonable care to ensure that such is the case), the information contained in this prospectus supplement and the
accompanying prospectus is in accordance with the facts and does not omit anything likely to affect the import of
such information.
The Republic is a foreign sovereign state. Consequently, it may be difficult for you to obtain or realize upon
judgments of courts in the United States against the Republic. See "Description of the Securities--Description of
the Debt Securities--Jurisdiction and Enforceability" in the accompanying prospectus.
The distribution of this prospectus supplement and the accompanying prospectus and the offering of the
global bonds may be legally restricted in some countries. If you wish to distribute this prospectus supplement or
the accompanying prospectus, you should observe any applicable restrictions. This prospectus supplement and
the accompanying prospectus should not be considered an offer, and it is prohibited to use them to make an offer,
in any state or country in which the making of the offering of the bonds is prohibited. For a description of some
restrictions on the offering and sale of the global bonds and the distribution of this prospectus supplement and the
accompanying prospectus, see "Underwriting" on page S-36.
This document is only being distributed to and is only directed at (i) persons who are outside the United
Kingdom and (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it
may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The global bonds are only available to, and any invitation, offer or agreement to
subscribe, purchase or otherwise acquire such global bonds will be engaged in only with, relevant persons. Any
person who is not a relevant person should not act or rely on this document or any of its contents.
Unless otherwise indicated, all references in this prospectus supplement to "PHP," "Philippine pesos,"
"pesos," "(Peso)" or "P" are to the lawful national currency of the Philippines, and those to "dollars," "US
dollars," "US$" or "$" are to the lawful currency of the United States of America.
Payments of principal and interest will be made in US dollars translated from Philippine pesos based upon
the Average Representative Market Rate at the applicable Rate Calculation Date (as defined herein). The
"Representative Market Rate" for any Rate Calculation Date is the weighted average of the buy and sell foreign
exchange rates for transactions completed on the previous Manila Business Day (as defined herein) by certain
commercial banks and financial corporations in Manila, the Republic of the Philippines, as calculated and
published by the Bangko Sentral, and which is available at the FX summary page of the website of PDEx
(www.PDEx.com.ph), Reuters page PHPES01 and Bloomberg page BAPH1. If such exchange rate is not
reported by the Bangko Sentral for any Manila Business Day, then the Representative Market Rate shall be
determined by the calculation agent by polling Bank of the Philippine Islands, BDO Unibank, Inc., Citibank,
S-4


N.A., Deutsche Bank AG, The Hongkong and Shanghai Banking Corporation Limited located in Manila
(collectively, the "Reference Banks") at 1:00 P.M., Manila time, for the exchange rate for the professional
market, by taking the arithmetic mean of the polled exchange rates (such mean, the "Alternative Rate"). If any of
the Reference Banks ceases to operate in Manila, the Republic shall designate a replacement bank for the purpose
of determining the Alternative Rate, with subsidiaries or branches of other banks having similar characteristics as
the Reference Banks. The "Average Representative Market Rate" for any Rate Calculation Date is the average of
the Representative Market Rates for each Manila Business Day in the five Manila Business Day period ending on
that Rate Calculation Date. See "Description of the Global Bonds--General."
On September 8, 2010, the Representative Market Rate was P44.420 per US$1.00.
The following table shows the high, low, average and period-end peso/US dollar Representative Market
Rates for each year from 2005 to 2009 and the first eight months of 2010.
Representative Market Rates(1)
(Pesos per US$)
High
Low
Average
Period End
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56.341
53.067
55.085
53.067
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53.587
49.132
51.314
49.132
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49.156
41.142
46.148
41.401
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49.984
40.360
44.475
47.485
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49.056
45.947
47.637
46.356
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.983
44.182
45.662
44.420
January . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.743
45.537
46.028
46.743
February . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.651
45.970
46.312
45.220
March . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.163
45.220
45.742
45.220
April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45.291
44.182
44.627
44.644
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.983
44.509
45.597
46.212
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.792
45.550
46.303
46.310
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46.584
45.813
46.320
45.813
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45.557
44.891
45.182
45.179
September (through September 8) . . . . . . . . . . . . . . . . . . . . . . . . . . .
45.314
44.420
44.844
44.420
(1) Representative market rate, as calculated by Bangko Sentral.
Source: Reference Exchange Rate Bulletin, Treasury Department, Bangko Sentral
All references in this prospectus supplement to (a) the "Republic" or the "Philippines" are to the Republic of
the Philippines, (b) the "Government" are to the national government of the Philippines, (c) the "administration"
are to the current administration of President Benigno S. Aquino III and (d) "Bangko Sentral" are to Bangko
Sentral ng Pilipinas, the central bank of the Philippines.
S-5


SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the
accompanying prospectus. You should read the entire prospectus supplement and the accompanying prospectus
carefully.
Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . Republic of the Philippines.
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . P44,109,000,000 4.95% PHP global bonds due 2021.
Issue Price . . . . . . . . . . . . . . . . . . . . . . . 99.607% of the principal amount of the global bonds. The issue price
will be payable in US dollars based on an exchange rate of Philippine
pesos into US dollars of P44.109 per US$1.00.
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . The global bonds will bear interest at 4.95% from September 17,
2010, payable semi-annually in arrears in US dollars as calculated as
described below.
Interest Payment Dates . . . . . . . . . . . . January 15 and July 15 of each year, payable to the persons who are
registered holders thereof at the close of business on the preceding
January 10 or July 10, as applicable, whether or not a business day.
The first interest payment will be made on January 15, 2011 in
respect of the period from (and including) September 17, 2010 to (but
excluding) January 15, 2011.
Maturity Date . . . . . . . . . . . . . . . . . . . . January 15, 2021.
Issuer Redemption . . . . . . . . . . . . . . . . The Republic may not redeem the global bonds prior to maturity.
Conversion of the Payment
Amounts . . . . . . . . . . . . . . . . . . . . . . . All amounts due in respect of principal and interest will be paid in US
dollars, calculated by the calculation agent by exchanging the
Philippine
peso
amounts
into
US
dollars
at
the
Average
Representative Market Rate at the applicable Rate Calculation Date
(as defined herein). The "Representative Market Rate" for any Rate
Calculation Date is the weighted average of the buy and sell foreign
exchange rates for transactions completed on the previous Manila
Business Day (as defined herein) by certain commercial banks and
financial corporations in Manila, the Republic of the Philippines, as
calculated and published by the Bangko Sentral, and which is
available at the FX summary page of the website of PDEx
(www.PDEx.com.ph), Reuters page PHPES01 and Bloomberg page
BAPH1. If such exchange rate is not reported by the Bangko Sentral
for any Manila Business Day, then the Representative Market Rate
shall be determined by the calculation agent by polling Bank of the
Philippine Islands, BDO Unibank, Inc., Citibank, N.A., Deutsche
Bank AG, The Hongkong and Shanghai Banking Corporation Limited
located in Manila (collectively, the "Reference Banks") at 1:00 P.M.,
Manila time, for the exchange rate for the professional market, by
taking the arithmetic mean of the polled exchange rates (such mean,
S-6


the "Alternative Rate"). If any of the Reference Banks ceases to
operate in Manila, the Republic shall designate a replacement bank
for the purpose of determining the Alternative Rate, with subsidiaries
or branches of other banks having similar characteristics as the
Reference Banks. The "Average Representative Market Rate" for any
Rate Calculation Date is the average of the Representative Market
Rates for each Manila Business Day in the five Manila Business Day
period ending on that Rate Calculation Date. See "Description of the
Global Bonds--General."
Status of Bonds . . . . . . . . . . . . . . . . . . . The global bonds will be direct, unconditional, unsecured and general
obligations of the Republic. Except as otherwise described, the global
bonds will at all times rank at least equally among themselves and
with all other unsecured and unsubordinated External Indebtedness
(as defined in the accompanying prospectus) of the Republic. The full
faith and credit of the Republic will be pledged for the due and
punctual payment of all principal and interest on the global bonds.
See "Description of the Securities--Description of the Debt
Securities--Status of Bonds" in the accompanying prospectus.
Negative Pledge . . . . . . . . . . . . . . . . . . . With certain exceptions, the Republic has agreed that it will not create
or permit to subsist any Lien (as defined in the accompanying
prospectus) on its revenues or assets to secure External Public
Indebtedness (as defined in the accompanying prospectus) of the
Republic, unless at the same time or prior thereto, the global bonds
are secured at least equally and ratably with such External Public
Indebtedness. The international reserves of Bangko Sentral represent
substantially all of the official gross international reserves of the
Republic. Because Bangko Sentral is an independent entity, the
Republic and Bangko Sentral believe that the international reserves
owned by Bangko Sentral are not subject to the negative pledge
covenant in the global bonds and that Bangko Sentral could in the
future incur External Public Indebtedness secured by such reserves
without securing amounts payable under the global bonds. See
"Description
of
the
Securities--Description
of
the
Debt
Securities--Negative
Pledge
Covenant"
in
the
accompanying
prospectus.
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . The Republic will make all payments of principal and interest in
respect of the global bonds free and clear of, and without withholding
or deducting, any present or future taxes of any nature imposed by or
within the Republic, unless required by law. In that event, the
Republic will pay additional amounts so that the holders of the global
bonds receive the amounts that would have been received by them
had no withholding or deduction been required. See "Description of
the Securities--Description of the Debt Securities--Additional
Amounts" in the accompanying prospectus. For a description of
certain United States tax aspects of the global bonds, see "Taxation--
United States Tax Considerations" in the accompanying prospectus.
S-7


Collective Action Clauses . . . . . . . . . . . The global bonds will contain provisions regarding default,
acceleration, voting on amendments, modifications, changes, waivers
and future issues of global bonds that differ from those applicable to
most of the Republic's outstanding External Public Indebtedness.
Under these provisions, which are described in the section entitled
"Collective Action Securities" on page 113 of the attached prospectus
dated December 23, 2009, the Republic may, among other things,
amend the payment provisions of the global bonds and certain other
terms with the consent of the holders of not less than 75% of the
aggregate principal amount of the outstanding global bonds.
Cross-Defaults . . . . . . . . . . . . . . . . . . . . Events of default with respect to the global bonds include (i) if the
Republic fails to make a payment of principal, premium, prepayment
charge or interest when due on any External Public Indebtedness with
a principal amount equal to or greater than $25,000,000 or its
equivalent, and this failure continues beyond the applicable grace
period; or (ii) if any External Public Indebtedness of the Republic or
the central monetary authority in principal amount equal to or greater
than $25,000,000 is accelerated, other than by optional or mandatory
prepayment or redemption. See "Collective Action Securities--
Events of Default: Cross Default and Cross Acceleration" in the
accompanying prospectus.
Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . The Republic is offering the global bonds for sale in the United States
and elsewhere where such offer and sale is permitted. Application has
been made to admit the global bonds to listing on the Official List of
the Luxembourg Stock Exchange and to trading on the Euro MTF
Market. The Republic cannot guarantee that the application to the
Luxembourg Stock Exchange will be approved, and settlement of the
global bonds is not conditional on obtaining the listing.
Form, Denomination and
Registration . . . . . . . . . . . . . . . . . . . . The global bonds will be issued in fully registered form in minimum
denominations of P5,000,000 and integral multiples of P1,000,000 in
excess thereof. The global bonds will be represented by one or more
global securities registered in the name of a depositary, its nominee or
a custodian. Beneficial interests in the global securities will be shown
on, and the transfer thereof will be effected only through, records
maintained by the depositary and its direct and indirect participants.
Settlement of all secondary market trading activity in the global
bonds will be made in immediately available funds. See "Description
of the Securities--Description of the Debt Securities--Global
Securities" in the accompanying prospectus.
Further Issues . . . . . . . . . . . . . . . . . . . . The Republic may from time to time, without notice to or the consent
of the registered holders of the global bonds, issue further bonds
which will form a single series with the global bonds. See "Collective
Action Securities--Further Issues of Debt Securities" in the
accompanying prospectus.
S-8


Use of Proceeds . . . . . . . . . . . . . . . . . . . The Republic will use the net proceeds from the sale of the global
bonds for the general purposes of the Republic, including budgetary
support.
Fiscal Agent . . . . . . . . . . . . . . . . . . . . . . The Bank of New York Mellon (as successor in interest to JPMorgan
Chase Bank, N.A.)
Calculation Agent . . . . . . . . . . . . . . . . . The Bank of New York Mellon
Governing Law . . . . . . . . . . . . . . . . . . . The fiscal agency agreement, the calculation agent agreement and the
global bonds will be governed by and interpreted in accordance with
the laws of the State of New York. The laws of the Republic will
govern all matters governing authorization and execution of the fiscal
agency agreement, the calculation agent agreement and the global
bonds by the Republic.
S-9


INVESTMENT CONSIDERATIONS
Risks Relating to Foreign Currency Securities
This prospectus supplement and the accompanying prospectus do not describe all the risks of an investment
in securities denominated in currencies other than US dollars. You should consult your own financial and legal
advisors about the risks of an investment in the global bonds. If you are unsophisticated with respect to foreign
currency transactions, these global bonds are not an appropriate investment for you.
The information in this section is directed to investors who are United States residents and does not address
risks for investors who are not United States residents. We disclaim any responsibility to advise prospective
purchasers who are residents of countries other than the United States with respect to any matters that may affect
the purchase, holding or receipt of payments of the global bonds. If you are not a United States resident, you
should consult your own financial and legal advisors.
Currency exchange rates can be volatile and unpredictable. If the Philippine peso depreciates against the US
dollar, the effective yield on the global bonds will decrease below the interest rate on the global bonds, and the
amount payable at maturity may be less than your investment, resulting in a loss to you. Depreciation of the
Philippine peso against the US dollar may also adversely affect the market value of the global bonds.
Rates of exchange between the US dollar and the Philippine peso have varied significantly over time.
Historical Philippine peso/US dollar exchange rates are presented on page S-5 of this prospectus supplement.
However, historical trends do not necessarily indicate future fluctuations in rates, and should not be relied upon
as indicative of future trends.
The Republic maintains a floating exchange rate system under which market forces determine the exchange
rate for the Philippine peso. Under Bangko Sentral's policies, it may, however, intervene in the market to
maintain orderly market conditions and limit sharp fluctuations in the exchange rate. Interventions by Bangko
Sentral have taken the form of transparent measures and have included clearly delineated periods and amounts
involved, as well as the explanations for these actions. Similar interventions in the future could affect the value of
the global bonds, as well as the yield on the global bonds and the amount payable to you at maturity.
The Monetary Board, which is the governing body of Bangko Sentral, has functions including determining
the exchange rate policy of the Republic. Bangko Sentral's foreign exchange policy objectives include
maintaining price stability, promoting and maintaining monetary stability and the convertibility of the peso,
protecting its international reserves during times of impending or on-going exchange crises or national
emergencies. To achieve these objectives and to give the Monetary Board and the government time in which to
take constructive measures to forestall, combat, or overcome any exchange-related crisis or emergency, the
Monetary Board may, with the approval of the President of the Republic, temporarily suspend or restrict sales of
foreign exchange by the Bangko Sentral, subject all transactions in gold and foreign exchange to license by the
Bangko Sentral, or require that foreign exchange obtained after the implementation of such restrictions by any
person within the Philippines (other than foreign currency deposits with depository banks under the Philippine
foreign currency deposit system) be delivered to the Bangko Sentral or to any agent it designates at the effective
exchange rate or rates provided by law. Any of these actions could have a material adverse effect on the value of
the peso and, consequently, the value of the global bonds.
Even in the absence of Bangko Sentral or government action directly affecting currency exchange rates,
political or economic developments in the Philippines or elsewhere could lead to significant and sudden changes
in the exchange rate between the Philippine peso and the US dollar.
S-10