Govt gets P71-B bids for debt swap


Posted at Jul 11 2011 03:44 PM | Updated as of Jul 12 2011 03:15 AM

MANILA, Philippines - Investors gobbled up bonds due 2031 in a government debt exchange that started last week, one of the arrangers of the deal said Monday.

Roberto Juanchito Dispo, First Metro Investment Corp. (FMIC) president, said the government's bond exchange has already attracted bids worth P71 billion, of which 89% was on the 20-year debt paper.

The Treasury is swapping 10.5- and 20-year papers for shorter-dated notes.

Dispo said they are confident that bids for the 10-year paper will reach P50 billion at the end of the offer period on July 13.

The government is looking to issue at least P100 billion worth of new debt papers, with a minimum coupon of 6.375% for the 10-year and 8% for the 20-year.

Final pricing for the swap offer, which is meant to stretch government bond maturities as part of the Aquino administration's efforts to trim debt servicing costs, is on July 15.

Dispo earlier said this year's bond exchange was expected to surpass last December's P185-billion offer.

FMIC, BPI Capital Corporation, SB Capital Investment Corporation and Citibank are joint deal managers.