A TOTAL of P199.66 billion worth of fresh 10- and 25-year bonds was issued by the government after a debt swap intended to lengthen its debt maturity and create benchmark papers closed last Friday.
The Bureau of the Treasury said bondholders submitted a total of P232 billion worth of papers in exchange for bonds due in 2020 and 2035, and were given P33.4 billion worth of 10-year bonds and P151.2 billion worth of 25-year bonds.
Investors also subscribed to around P15 billion worth of 25-year bonds in a sale intended to raise money to pay those who voluntarily tendered their debt papers for cash. No new money was raised during the sale.
“This bond exchange is a landmark transaction in every sense of the word,” Finance Secretary Cesar V. Purisima was quoted as saying in a statement.
“[It] successfully established a very liquid long-term benchmark, thus greatly contributing to the development of the domestic capital market. The transaction is also a significant achievement of the Aquino administration as this clearly signals investor confidence in the country’s long-term prospects,” he added.
Investor confidence is high.