MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSLAM) said it planned to tap the local bond market rather than issue dollar bonds next year to refinance maturing debts of the National Power Corp. (Napocor).
It did not say how much it planned to raise, but PSALM has an authority to raise P20 billion ($460 million) via domestic bonds under a P50-billion liability management program, which was approved by its board last year.
The company, tasked with privatizing the assets and managing the debts of state-owned Napocor, also has a standing authority to raise $1 billion from dollar-denominated bonds.
"PSALM is leaning towards raising the necessary funds in the local currency. The final choice, however, will depend on what the PSLAM board will deem as more advantageous to the government," the agency said in a statement..
Napcor needs to settle a total of $1.2 billion of debt that matures in March and August next year.