This is reminiscent of the award-winning 1-day Accelerated Switch Tender Offer conducted last 10 January 2014, hailed by FinanceAsia to be an innovative case of proactive liability management. “As the reputation of the RoP gains steam in the international markets, we are proud to be the first to issue global bonds in the dollars space,” Purisima added.
Treasurer of the Philippines Rosalia de Leon reported on the success of the transaction, saying, “Cash orderbook reached $7.9 billion or 15 times oversubscribed, while liability management orderbook reached $6.1 billion in market value terms. The size of the final deal is $2.0 billion, of which $1.5 billion were used to switch and retire old bonds $500 million in new money will be used for funding the budget.”
“Notably, we attracted new name investment grade-only investors in this transaction. This robust response from the international markets reflects that our manifest confidence in the strength of the Philippine economy and liability management strategy is very well placed,’ she added.