Philippines Buys Back $1.3 Billion Bonds To Improve Credit Rating
The Philippine government is set to buy back $1.3 billion worth of foreign-currency debt in an effort to manage the country’s liabilities and improve its credit rating. The Philippines will be spending around $1.7 billion for the transaction.
Finance Secretary Cesar Purisima told the press that this is “in line with our on-going objective to rebalance our debt portfolio in favor of local currency. This should be supportive of our effort to obtain investment grade ratings.”
Meanwhile, Finance Undersecretary Rosalia de Leon says that the government will be saving around $165 million in “net present value” from this transaction.
Citigroup Inc. and JPMorgan Chase & Co. (JPM) are the assigned arrangers for this buyback. They are being assisted by Goldman Sachs Group Inc. (GS), HSBC Holdings Plc., Standard Chartered Plc and UBS AG.