National Power Corp. Global Bond issue

26 Oct 2006

The National Power Corporation issued USD500 million 10-year Global Funds fully guaranteed by the Republic of the Philippines. The Reg S / 144a transaction matures on 02 November 2016.

The transaction was announced on Wednesday morning and the order book closed within 14 hours. Over 210 investors participated in the transaction, 43% coming from Asia, 26% from Europe, and 31% from the United States.

National Power president Cyril del Callar commented: "The strong investor response to our offering is very encouraging. With this benchmark deal, we have completed our US dollar funding plans for the year."

This is the only international transaction for National Power for the year and completes its offshore funding program for 2006. The notes were priced at a yield of 6.875%.

"We are very pleased with the deal," said Nieves Osorio, president of the Power Sector Assets and Liabilities Management Corporation. "We have successfully re-benchmarked the credit of National Power and this positions us better for future funding exercises."

National Treasurer Omar Cruz commented: "The republic is pleased with the outcome [of the transaction]. It marks a turnaround in the appetite of international investors for the National Power credit and manifests their enhanced appreciation of the overall fiscal situation of the Republic."

Citigroup and Deutsche Bank acted as joint lead managers and joint book runners for the transaction.

This press release is not an offer of securities for sale in the United States. Securities may not be sold in the United States unless they are registered or are exempt from registration. The Company does not intend to register any portion of the proposed offering in the United States or to conduct a public offering in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the Company and its management, as well as financial statements. Copies of this announcement are not being, and should not be distributed in or sent to the United States.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067