Republic of the Philippines in Debt Exchange Warrants Offering

Cleary Gottlieb represented Credit Suisse as the warrant manager in a Regulation S offering by the Republic of the Philippines of 2.25 million debt exchange warrants, which permit the exchange of $2.25 billion of bonds. The deal closed on June 6.

The warrants entitle the holders to exchange specified series of the Republic’s outstanding and to-be-issued U.S. dollar- and euro-denominated bonds for a series of Philippine domestic bonds denominated in Philippine pesos, in the event of a default on those foreign-currency bonds. Philippine banks will benefit from favorable capital treatment of their holdings in Philippine foreign currency debt by owning the warrants.