Govt curbs debt refinancing risks

Offers 25-year dollar bonds with 4.2% yield The Philippines is offering new 25-year dollar bonds, due 2040, with yields of 4.2 percent for old debts maturing from January 2016 to October 2034. It is also offering cash for investors who decide not to buy the new bonds.

The new bond issue was assigned a provisional rating of (P)Baa2 by Moody’s Investors Service as it lauded the Bureau of the Treasury for proactively addressing refinancing risks by lengthening the average maturity of its local currency debt to about 13 years, from about seven years as of end-2009.