FOR LOCAL MEDIA RELEASE ONLY
The Republic of the Philippines (the “Republic”) has announced results of its tender offer of eligible existing US Dollar and Euro denominated bonds.
The Republic sought invitations for 15 series of bonds for the tender over a 6-day offer period. The total consideration paid by the Republic, including accrued interest on tendered bonds, is expected to be approximately US$1.5 billion.
Finance Secretary Cesar Purisima commented that, “the tender offer and the recent Peso-Denominated Global Bond offering, aided by positive market conditions and the Republic’s strong liquidity position, allowed the Republic to manage its external liabilities through the redenomination of a portion of the Republic’s external debt into the local currency.â€
National Treasurer Rosalia De Leon added that, “the exercise will also reduce interest costs for the Republic, avoid bunching up of maturities, and extend the duration profile of the Republic’s outstanding debt portfolio.”
The tender offer is being funded using certain investible funds held by the Bureau of the Treasury as well as proceeds from the recently-offered PHP30.8 billion Peso-Denominated Global Bonds of the Republic.
Credit Suisse, Deutsche Bank, and HSBC acted as joint global coordinators, and together with Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS, acted as joint dealer managers for the transaction.