MANILA: The Philippine government will sell new 25-year US dollar bonds in a swap for 15 outstanding bonds to help it better manage its debt load, it said in a notice issued to investors on Tuesday.
The Philippines, which won ratings upgrade from Standard & Poor's and Moody's Investors Service last year, will sell bonds due 2040 in exchange for debt maturing from January 2016 to October 2034. It is also offering cash for investors who decide not to buy the new bonds.
According to IFR, a Thomson Reuters publication, the new 25-year US dollar benchmark is being marketed to yield 4.2 percent.
The new notes are rated on par with the issuer's rating of Baa2/BBB/BBB-. The Southeast Asian nation has an authority to exchange up to $1.25 billion worth of foreign-currency denominated bonds and raise up to $750 million by selling global bonds, a government source said in December.
Deutsche Bank and HSBC are joint global co-ordinators, and are also joint bookrunners alongside Citigroup, Credit Suisse, Goldman Sachs, JP Morgan, Morgan Stanley, Standard Chartered and UBS.
The country, which wants to cut its dependence on foreign borrowing by pursuing debt buy-backs and swaps, last issued a $1.5 billion 10-year bond at par, to yield 4.2 percent, in January 2014.
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