Gov't to repurchase over $1.57-B bonds

MANILA, Philippines - The government is expected to repurchase more than $1.5 billion worth of outstanding euro and dollar-denominated bonds as the buyback offer has been well received by investors, a senior Finance official said yesterday.

The official said the government expects to exceed the original $1.5-billion plan on the back of strong demand.

The Department of Finance (DOF) is set to decide how much in outstanding euro and dollar-denominated bonds it would buy back.

“The government will soon decide how much it would repurchase,” the official said. The government has outstanding dollar and euro bonds amounting to $17.5 billion that are eligible for the repurchase.

The buy-back is meant to convert the government’s dollar debt into peso as part of its debt liability management efforts.

Officials said the repurchase bodes well for the government’s future debt offers as it reflects its efficiency in managing its debt.

Finance Secretary Cesar Purisima earlier said the government is in a strong liquidity position and that conditions are ripe for such an exercise.

“Market conditions present an opportunity to proactively manage its external indebtedness in a cost effective manner. This is consistent with our objective to increase the local currency component of our indebtedness while extending maturities and reducing cost,” Purisima said.