The loan includes a $ 395.5-million term loan and $ 104.5 million in floating rate notes, a central bank statement said.

BSP governor Amando Tetangco said the decision to repay the loan early took into consideration the country's increasing gross international reserves (GIR) and continuing foreign exchange inflows.

It will also enable the central bank to save on interest expenses, he said.

However, he did not categorically say if the GIR, which stood at a record $ 20.58 billion at the end of last month, will be tapped for the loan repayment, or if the central bank will seek new loans for this purpose.