The global bonds, issued amidst a global credit crisis, were 'the first international offering by an Asian borrower in 2009,' a government statement said.

'The transaction fulfills the government's expected external funding requirements for 2009 and represents an important success for the Philippines,' Finance Secretary Margarito Teves said in a statement issued by the government.

'We are hopeful that our success will bode well for other Philippine and Asian borrowers,' he added.

Pricing was at the tight end of the indicative yield range of 8.50 and 8.75 per cent touted to investors on Wednesday.

The issue was lead-managed by Credit Suisse, Deutsche Bank and HSBC Holdings.

Manila will use the proceeds to help finance a programmed budget deficit of 102 billion pesos (S$3.3 billion) this year.

The 2009 budget includes a 300 billion-peso stimulus package designed to keep the engines of economic growth turning in the critical first few months of 2009, Economic Planning Secretary Ralph Recto said in a statement.

'What we intend to do is upgrade infrastructure and capital stock and expand social protection at the same time,' Mr Recto said.

He added the stimulus package would seek to 'save and create jobs, protect the poorest of the poor, returning overseas Filipino workers in export industries, ensure low and stable prices to support consumer spending, and enhance competitiveness in preparation for the global rebound.'

With this cash injection the government hopes to grow the economy by between 3.7 and 4.7 per cent this year, Recto said. -- AFP