Gov’t starts issuance of P300-B bonds

By , on August 27, 2015

Shutterstock photo
Shutterstock photo

MANILA – The government yesterday announce that it started the sale of 2025 and 2040 domestic bonds.

In a bid to improve liquidity and generate savings, the government began issuing the bonds on Wednesday, which will run until Sept. 4.

The offer is meant to allow eligible government securities bondholders to swap their bonds for shorter dated securities.

Those holding government securities which will mature between Nov. 25, 2015 and Nov. 11, 2024 and between April 4, 2025 and Oct. 24, 2037 can participate in the swap.

Meanwhile, in an interview with reporters, National Treasurer Roberto Tan said that the government will offer a minimum P50 billion for each tenors.

This is out of the maximum issue size of P300 billion.

He also added that the government is confident on the take-up following the “good feedback” from both institutional and retail investors.

“We are confident that, with the unwavering support of the GSEDs (Government Securities Eligible Dealers), this domestic liability management exercise by the government can be executed successfully,” Tan said.

“The transaction will benefit both investors, who can exit into liquid benchmark securities, and the government, which can attain its debt management and capital market development objectives,” he added.