BY ANGPING & ASSOCIATES SECURITIES
The Philippines is returning to the international debt market with plans to sell new 25-year US dollar denominated bonds in a swap for shorter-dated notes as part of its proactive liability management strategy.
The government would issue bonds due 2040 in exchange for debt maturing from 2016 to 2034.
The new 25-year bonds are being marketed to yield 4.2%.
The government was looking to issue $750.0 million to $1.0 billion in foreign currency denominated bonds to further pare down debt.
The Philippines’ last foray into international bonds markets was in January 2014 when it sold $1.5 billion worth of 10-year dollar-denominated bonds to take advantage of record-low interest rates and strong liquidity.