PH returns to global bond market with triple-tranche bond sale

The Philippines returned to the international debt market on Tuesday with a triple-tranche bond sale of 5.5-, 10-, and 25-year notes, with proceeds earmarked for the government’s general budget financing as it manages a fiscal deficit.

Initial pricing guidance for the shortest tranche was announced at T+70 basis points, the 10-year tranche at T+100 basis points, and at 5.90% for the 25-year tranche.

The transaction will be priced during the New York trading session, and will be settled on January 27, 2026.

The latest offering came after the dual-currency $2.25-billion and €1-billion issuance in January 2025, the $2.5-billion triple-tranche offering in August 2024, and the $2.5-billion dual-tranche offering in May 2024.

“The Republic intends to use the proceeds from the sale of the Global Bonds for general budget financing,” the Bureau of the Treasury (BTr) said in a statement.

This comes as the country continues to post a fiscal deficit, hitting P1.26 trillion as of end-November 2025 as revenues climbed 1.09% to P4.15 trillion while expenditures grew 2.49% to P5.4 trillion, based on BTr data.

“We have seen favorable market conditions for the Republic to return to the international capital markets today,” National Treasurer Sharon Almanza said.

“Anchored on stable fundamentals and our recent credit affirmation, this transaction reflects our proactive and strategic approach to secure cost-efficient funding while advancing the National Government’s development priorities. We value the continued confidence and support of our investors,” she added.

The government tapped BofA Securities, Deutsche Bank, HSBC (B&D), J.P. Morgan, Morgan Stanley, Standard Chartered Bank, and UBS as joint lead managers and bookrunners for the transaction.

“This transaction underscores our steadfast dedication to sound fiscal policy and sustainable development,” Finance Secretary Frederick Go said in the same statement.

“We are confident that our policy direction and reform agenda will continue to resonate with the global investment community and support a successful outcome for this offering,” he added.

The global bonds have been rated “BBB+” by S&P Global Ratings, and “Baa2” by Moody’s. — JMA, GMA Integrated News