Bond swap, sale completed; Successful offering ‘a landmark transaction’ — Purisima

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Businessworld wrote:

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.

The ProPinoy Project