philippines-completes-debt-exchange-warrant-sale

Philippines completes debt exchange warrant sale

A second sale of warrants allows domestic banks to switch foreign currency bonds into peso-denominated debt and circumvent new risk-weighting rules.
June 04, 2008
The Republic of the Philippines announced yesterday that it had completed the sale of its second series of debt exchange warrants. It sold $2.25 million of warrants representing a face value of $2.25 billion foreign currency-denominated Philippine bonds ROPs with maturities beyond November 2017 and up to September 2032.

The warrants will allow holders to exchange ROPs into local currency peso debt in case of a credit default by the government, and resolve a problem caused by the implementation of the Basel II framework, which should be fully effective from January 1, 2009. Under Basel II, ROPs held by Philippine commercial banks would be 100% risk-weighted and banks would have to...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222