STATE-RUN POWER SECTOR Assets and Liabilities Management Corp. is offering new global bonds worth up to $600 million and a bond exchange deal for existing bond holders in line with efforts to efficiently manage the liabilities of National Power Corp.

The offering started on Monday and will end on Nov. 24.

“The bond exchange offer will help extend the maturity of existing loans incurred by Napocor and were later transferred to PSALM as mandated by Republic Act No. 9136 or the Electric Power Industry Reform Act,” PSALM said.

Eligible for the bond exchange offer are Napocor notes that are maturing in 2010 and 2011.

These included the $500-million guaranteed notes falling due on March 16, 2010; the $700-million zero coupon guaranteed bonds due on July 12, 2010, and the $400-million guaranteed floating rate notes due on Aug. 23, 2011.

Each series was guaranteed by the government, PSALM said.

PSALM said the old bonds can be exchanged for the newly issued US dollar-denominated guaranteed global bonds due 2024 ( called the “2024 bonds”) or the reopened US dollar denominated guaranteed global bonds due 2019 or the “2019 bonds.

Proceeds from the offering of the new global bonds will be used for general corporate funding requirements, including servicing debts and independent power producer contracts.

Napocor has so far managed to privatize the management of two IPPs, those for the Sual and Pagbilao power plants.

Development Bank of the Philippines, Morgan Stanley & Co. International plc, and UBS AG are the joint deal managers and bookrunners of the global bond offering.

The global bond offering is the second fund-raising activity of PSALM this year. The first was the $1- billion 2019 bonds offer in May.