*Amount a record for swap
*Bulk of offers were for 2031 bonds
MANILA, Philippines (UPDATE) - The government received P308 billion ($7.2 billion) worth of bids for its new 2022 and 2031 bonds in a local bond swap program aimed at stretching its debt maturity profile, an arranger said on at the end of the offer on Wednesday.
Investors have tendered P237.53 billion worth of shorted-dated maturities for the 2031 bonds, and P70.58 billion for the 2022 bonds, said First Metro Investment Corp. (FMIC), one of the deal managers.
"The record amount of tenders for the bond exchange was anchored mainly on the country's healthy macroeconomic fundamentals and firm view of the markets that the exchange will drive trading activity in the secondary market," said Roberto Juanchito Dispo, president of FMIC.
About P1.9 trillion worth of bonds were eligible for the swap.
The minimum coupon for the 2022 bonds had been set at 6.375%, and 8% for the 2031 bond. Final pricing is on July 15 and settlement is on July 19.
On Wednesday, 10-year bonds were quoted at 6.24% and the 20-year paper at 8.135% in the secondary market.
Manila issued a record P185 billion of 2020 and 2035 benchmark bonds at its previous domestic bond exchange in December. It also sold P15 billion of debt as part of the offer.
BPI Capital Corp., SB Capital Investment Corp., Citibank and state lenders Development Bank of the Philippines and Land Bank of the Philippines are joint deal managers with FMIC.