|
STATE-RUN National Food Authority (NFA) will borrow anew this year
to support its rice- buying activities amid the commodity’s rising
price in the local and international markets, the Department of
Finance said Wednesday.
Finance Undersecretary Jere-mias N. Paul Jr.
said NFA may require another P8 billion to procure additional
400,000 metric tons of rice this year for which the government has
set aside P27-billion worth of guarantee.
Paul said the grains agency’s outstanding
obligation currently runs between P35 billion and P36 billion, which
government expects to balloon to P43 billion.
NFA earlier floated P8-billion worth of bonds to
finance procurement of grains, capital expenditures, general funding
requirements and refinance maturing debt obligations.
The Bureau of Treasury said NFA will issue
10-year notes guaranteed by the national government.
The directive on the bond issue reads:
“Interest rate shall be benchmarked against the 10-year PDST-F
rate but final yield to be determined during the auction. Interest
rate shall be fixed for the life of the notes and payable
semiannually.”
If the notes are not redeemed prior to maturity
on the call option date, the government said the interest rate from
the call option date until maturity date shall remain the same and
shall not be adjusted.
Issue managers of the borrowings are AB Capital
and Investment Corp., Deutsche Bank AG Manila Branch, Multinational
Investment Bancorporation, Philippine Commercial Capital, Inc., SB
Capital Investment Corp. and United Coconut Planters Bank.
-- Chino S. Leyco
|
