06 Apr 2010
The Power Sector Assets and Liabilities Management (PSALM) Corporation plans to raise PhP20 billion through a peso retail bond issue within April this year.
The retail bonds will consist of 5-year and 7-year maturities that will be offered to both retail and institutional investors. The retail bonds are expected to be priced on 12 April, with interest to be set via an auction facilitated by the Bureau of the Treasury. Interest on the bond will be paid quarterly.
The retail bonds will be PSALM's debut issuance in the domestic market. It will carry the full, irrevocable, and unconditional guarantee of the Republic of the Philippines.
According to PSALM, the proceeds from the bond issuance will be used to augment PSALM's working capital and, at the same time support, its liability management program.
PSALM has mandated Development Bank of the Philippines, First Metro Investment Corporation and The Hongkong and Shanghai Banking Corporation Limited as joint issue managers and bookrunners.
PSALM was created under Republic Act No. 9136, the Electric Power Industry Reform Act of 2001, to manage the privatization of the state's power assets and to handle the liabilities of state utility National Power Corporation.
Corporate Communications Division