Official: PHL debt swap may happen this July

Government's planned debt swap may push through by July subject to approvals by the concerned agencies, an official said on Tuesday. National Treasurer Roberto Tan said government is still waiting for the green light from the Bangko Sentral ng Pilipinas' (BSP) Monetary Board, the Office of the President and the Securities and Exchange Commission before the planned deal is carried out. Under the debt swap, government intends to issue bonds that will mature longer in exchange for shorter-dated bonds falling due in the market. Government wants to issue 20- and 25-year Treasury bonds under the deal, Tan said. However, the timing of the transaction is contingent on recommendations of state-owned Land Bank of the Philippines and the Development Bank of the Philippines government tapped as deal arrangers. In December 2010, government entered into a similar debt swap transaction and awarded roughly P200 billion worth of new 2035 and 2020 bonds to investors. Meanwhile, in September last year, the government likewise issued $2.04 billion worth of new 2021 US dollar bonds and $950 million of reopened 2034 US dollar bonds, for a total of $2.99 billion in a dollar debt swap. For the planned swap this July, Tan said it is too early to tell if government will also sell new debt or simply convert exhisting debt — JMT, GMA News