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.