By Aaron Michael C. Sy, A reporter
PHILIPPINE GOVERNMENT raised $2.75 billion (about P163 billion) in bonds, as it returns to international capital. markets for the first time in a year.
The triple dollar bond issuance was the largest US dollar deal by the Philippine government in three years, the Bureau of the Treasury (BTr) said. The amount collected was also higher than the initial minimummother is aiming for 1.5 billion.
“The exceptional reception of our first international bond issue of 2026 shows the confidence of global investors in the Philippines.fit reinforces the strength of our economic base despite challenging market conditions,” said Finance Secretary Frederick D. Go in a statement.
According to the sheets, the government raised $500 million in 5.5-year bonds at a coupon rate of 4.25%, about 50 basis points (bps) above the corresponding US Treasury yield (3.847%) but 20 bps below the 70-bp target spread.
The 10-year note was the largest piece at $1.5 billion. It fetched a coupon rate of 5%, 80 bps above the corresponding US Treasury yield (4.287%) but still 20 bps below the 100-bp target spread.
Finally, the government raised $750 million in 25-year bonds with a coupon of 5.75%, and below the target of 5.9%.
All three segments of the world’s bonds have small amounts of non-new premiums, BTr said.
“Despite the high volatility of the markets and the uncertainty of the country, the work has achieved strong values, showing the position of the Republic as a high rating of emerging market credit and shows the strong confidence of investors in the strength of the country’s debt and the way of long-term development,” National Treasurer Sharon. P. Almanza in a statement.
The government will use the proceeds from the sale of international bonds for general purposes, including budget support.
The government sold bonds with a minimum investment amount of $200,000 and denominations of $1,000 thereafter.
The notes will be listed on the Luxembourg Stock Exchange Euro multilateral trading facility (MTF), with a settlement date scheduled for Jan. 27.
BofA Securities, Deutsche Bank, HSBC (B&D), JPMorgan, Morgan Stanley, Standard Chartered Bank and UBS were appointed as lead managers and bookrunners for the transaction.
Global bonds, taken from the existing government shelf system, are rated “Baa2” by Moody’s Ratings, “BBB+” by S&P Global Ratings, and “BBB” by Fitch Ratings. These estimates are in line with Philippine government estimates.
The latest release leaves $2.55 billion in the government’s $5.3 billion annual foreign borrowing program.
This is also the fourth time the Marcos administration has used the overseas debt market, following the double issuance of $2.25 billion and €1 billion in January 2025, the triple offering of $2.5 billion in August 2024, and the double offering of $2 billion in May 2024.
The government was able to time the rollout appropriately to meet strong demand despite market volatility, Reyes Tacandong & Co. Senior Counsel Jonathan L. Ravelas said in a Viber message.
“The timing made sense. Global markets have been building recently, giving the Philippines a clean window to close funding before uncertainty. Investors were receptive, the latest releases saw strong demand,” he said.
The trader said in a written message that strong demand is also allowing the government to buy bonds close to initial guidance.
“Spreads have tightened by about 15-20 bps from initial pricing assumptions, reflecting strong investor appetite despite fluctuating global rates. Final yields were competitive and in line with market rates, while the quality of demand, particularly from real money accounts, underscored continued reliance on Philippine sovereign debt.”
Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera also said in a Viber message that the strong demand for bonds is a good sign of continued investor appetite for Philippine-issued debt, especially amid global market volatility and a weak peso.
“Sustaining this demand will depend on fiscal discipline, credible debt management, and clarity about growth. Investors will not only watch yields but how the proceeds are spent and how major policies evolve,” he added.
The government is borrowing from local and foreign sources to help finance its budget deficit, which stands at P1.647 trillion or 5.3% of gross domestic product this year. Of this, 23% will be raised externally.
