PHL hires 4 private banks to handle debt swap deal

Four private banks will handle the Philippines’ debt swap deal next month, National Treasurer Roberto Tan told reporters Thursday. First Investment Corp., BPI Capital Corp., SB Capital Investment Corp. and Citibank were appointed by the Philippine government as lead managers for the transaction, Tan said. The private banks will join state-owned Development Bank of the Philippines (DBP) and Land Bank of the Philippines in handling the debt swap. With this step in the process taken cared of, government will now look into the best time for the debt swap, the Philippine treasurer said. “The next step is market sounding," he added. The plan is to exchange short-term debts for longer maturing bonds callable in 10 and 20 years to lengthen the average maturity of the country’s outstanding debts. The Philippines may also issue 20- and 25-year Treasury bonds. The last time the government did a domestic bond swap was in December when it awarded roughly P200 billion worth of new 2035 and 2020 bonds to investors. The Aquino administration is looking to finance a budget deficit of P290 billion or 3.2 percent of the gross domestic product this year. — VS, GMA News