RP's debt notes sells out

RP's debt notes sells out

MANILA (AFP): The auction of the Philippines' first five-year
Fixed Rate Treasury Notes (FXTNs) received an enthusiastic
response with an oversubscription for the entire three-billion-
peso (US$115.4-million) block, the Central Bank said yesterday.

These are the first government securities to have a maturity
rate of five years. The Philippine government has previously
issued only short-term securities with maturities of about three
years.

The majority of treasury notes have maturities of only 90 days
to one year.

The Central Bank said in a statement the five-year notes were
issued to supplement existing short-term securities and to expand
the capital market by "providing varying instruments and
broadening participation in the government securities market."

"The five-year FXTNs are direct, unconditional and general
obligations of the national government and are redeemable at one
lump sum at maturity," the Central Bank added.