Manila c.bank okays PSALM $1.2 bln debt plan-source

MANILA, Nov 12 (Reuters) - The Philippines' Power Sector Assets and Liabilities Management (PSALM) is planning a $600 million debt exchange offer and a $600 million global bond issue this year as part of its debt liability management, a government source said on Thursday.

"The central bank approved it in principle a few weeks ago," the source told Reuters on condition of anonymity.

The source said PSALM's proposed dollar bond sale may be priced soon.

Proceeds from the global bond sale will be used to fund the operations of the country's largest power producer, National Power Corp or Napocor, whose assets and borrowings are overseen by PSALM, while the debt swap offer is meant to lengthen the agency's debt maturity profile, the source said.

(Reporting by Karen Lema)