PH buys back $1.5-B foreign debts
MANILA, Philippines - The government has completd the buyback of $1.5 billion of the country's foreign debts, the Department of Finance said.
The transaction included US dollar- and euro-denominated bonds.
"The Republic sought invitations for 15 series of bonds for the tender over a 6-day offer period. The total consideration paid by the Republic, including accrued interest on tendered bonds, is expected to be approximately $1.5 billion," the Finance department said.
National Treasurer Rosalia De Leon said this would "reduce interest costs for the Republic, avoid bunching up of maturities, and extend the duration profile of the Republic’s outstanding debt portfolio."
The Finance department said the government was able to fund debt purchase through certain investible funds held by the Bureau of the Treasury as well as proceeds from the recently offered P30.8 billion ($750-M) global peso-denominated bonds.
Finance Secretary Cesar Purisima said the global peso bond offer received strong demand from investors, reflecting optimism on the country's economic fundamentals.
He added: "The tender offer and the recent peso-denominated global bond offering, aided by positive market conditions and the Republic’s strong liquidity position, allowed the Republic to manage its external liabilities through the redenomination of a portion of the Republic’s external debt into the local currency."
Credit Suisse, Deutsche Bank, and HSBC acted as joint global coordinators for the transaction. The banks, together with Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS, also acted as joint deal managers, the Finance department said. - Rappler.com