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.

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...

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