Govt receives P304B in tenders for debt swap

A government swap that ended Wednesday saw investors submitting P304 billion in bids for bonds maturing in 2022 and 2031, National Treasurer Roberto Tan said on Thursday. Broken down, the amount consists of P234 billion that went to 20-year bonds and P70 billion that went to 10.5-year bonds. “We are very pleased with the great demand generated by this year’s domestic debt exchange. It reflects confidence and trust by investors in the economic leadership of the country and the strong fundamentals and long-term prospects of the economy," Tan said. Last week, the Department of Finance and the Treasury Bureau, along with six bank arrangers, launched the Philippine domestic debt consolidation program for the year. The government has set a 6.375-percent minimum coupon rate for the 10.5-year bonds that will mature in January 2022, and an 8-percent rate for the 20-year bonds due July 2031. The final price-setting is supposed to be finished Thursday while the settlement of the transaction is scheduled on July 19. The exchange program considered as eligible all bonds due from July 2011 to April 2021 and from March 2022 to January 2031. — PE/VS, GMA News