PHL looking at 10, 20- or 25-yr. tenors for local bond swap

The Philippine government is looking at issuing peso-denominated bonds with tenors of 10, 20 or 25 years for its domestic bond swap program, which could be launched as early as this month.

 

The size and timing of the offer are still being finalized but those are the "preferred tenors," National Treasurer Roberto Tan said in a text message to Reuters.

 

The issue could be launched as early as this month, or early September, with authorities keen on completing the transaction before any policy action by the US Federal Reserve, said an official at one of the eight banks handling the deal.

 

The official, who declined to be named, said the government will likely issue a 10-year bond but authorities were still debating whether a second bond, with a 20- or 25-year tenor, should be offered.

 

The approved maximum amount for the swap was P300 billion.

 

"We are discussing with our underwriters about the organization and execution process," Tan said.

 

The eight banks tapped to handle the deal were First Metro Investment Corp., BDO Capital, BPI Capital, Land bank of the Philippines, Development Bank of the Philippines , Deutsche Bank, HSBC and Citibank.

 

Manila issued P140 billion of 2024 bonds in the last domestic bond exchange in August last year. – Reuters