The Republic of the Philippines announced yesterday that it succeeded in selling its maximum target of two million warrants, or an issue amount of $2 billion, in the first transaction of its kind.
The warrants are addressing the threat of bond liquidation following the implementation of Basel II requirements in the Philippines. ôThe transaction ensures that domestic banks still have the capacity to invest in sovereign bonds in a way that complies with upcoming regulations,ö continues the source.
Holders of the sovereignÆs paper can exercise the warrants, which were sold at the minimum clearing price of $7.50, to convert their foreign currency bonds to peso bonds.
ôThe department of finance elected to reach as many...
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