Manila, 26 August 2015. The Republic of the Philippines (the “Republic”) announced today the launch of a domestic liability management transaction, which will be conducted through the Department of Finance and the Bureau of the Treasury. The transaction forms part of the Government’s liability management program to establish liquid benchmarks to promote liquidity and generate savings for the Republic.

The transaction invites bondholders of certain eligible Government securities to exchange their bonds for new benchmark bonds due 2025 and 2040. This exercise simultaneously offers subscription (for cash) to the new benchmark bonds due 2025. The Republic is targeting a minimum issue of PHP50 billion for each of the new benchmark bonds. The proceeds from sale of new benchmark bonds (new money component) will be primarily used to settle accrued interests payable to bondholders of accepted eligible bonds in the exchange component and other transaction related expenses. The balance will be used by the Republic for general budgetary purposes.

The offer will commence on 26 August 2015 and will expire on 4 September 2015. Details of the offer are available on the Bureau of the Treasury website www.treasury.gov.ph.

Finance Secretary Cesar V. Purisima said, “The transaction is part of the Republic’s ongoing commitment to proactively manage the Government’s debt portfolio. This will also provide an opportunity for existing GS investors to exchange their illiquid bonds and receive benchmark bonds which will trade more efficiently in the market.”

Treasurer of the Philippines Roberto B. Tan added, “We are confident that, with the unwavering support of the GSEDs, this domestic liability management exercise by the Republic can be executed successfully. The transaction will benefit both investors, who can exit into liquid benchmark securities, and the Republic, which can attain its debt management and capital market development objectives.”

BPI Capital Corporation, Citicorp Capital Philippines, Inc., The Hongkong and Shanghai Banking Corporation Limited and Land Bank of the Philippines are Joint Global Coordinators, and BDO Capital & Investment Corporation, BPI Capital Corporation, Citicorp Capital Philippines, Inc., Deutsche Bank AG, Manila Branch, Development Bank of the Philippines, First Metro Investment Corporation, The Hong Kong and Shanghai Banking Corporation Limited, and Land Bank of the Philippines are Joint Deal Managers for this transaction.