PH taps global debt market anew with 2nd triple-tranche bond offering

The Philippine government is returning to the international debt market with a triple-tranche offering of US dollar-denominated 5.5-, 10-, and 25-year bonds aimed at supporting the country's financing needs.

In a statement on Tuesday, the Bureau of the Treasury (BTr) announced the launch of the fixed-rate securities, or "Global Bonds," marking the government's second foray into the international debt market in 2026 after its first triple-tranche bond sale in January.

"The Republic intends to use the proceeds from the sale of the Global Bonds for general budget financing," the Treasury said.

The latest offering comes after the government's issuance of $2.25 billion and €1 billion worth of bonds in January 2025, as well as a $2.5 billion triple-tranche offering in August 2024.

Meanwhile, the 25-year notes will be a tap, or additional issuance, of the existing 5.750% US dollar bonds maturing in 2051, which were issued in January this year.

The Treasury said the initial price guidance was set at 85 basis points above the US Treasury benchmark (T) for the 5.5-year tranche, T+125 basis points for the 10-year tranche, and 6.100% for the tap of the 25-year tranche.

The BTr said the transaction would be priced during the New York trading session on June 16, 2026.

"The national government remains committed to fostering strong and inclusive socioeconomic growth. This transaction highlights our continued pursuit of prudent fiscal management and our broader development agenda. Against the backdrop of encouraging developments in global markets, we are confident that our policy direction will continue to be well received by the international investment community," Finance Secretary Frederick Go said.

National Treasurer Sharon Almanza said the country's return to the international capital markets "comes at an opportune time amid improving market sentiment and favorable global developments."

"This transaction reflects our prudent and proactive approach to financing, allowing us to secure funding efficiently while supporting the National Government's priority programs and development objectives," Almanza said.

The Global Bonds are expected to be rated Baa2 by Moody's, BBB+ by Standard & Poor's, and BBB by Fitch.

The transaction is scheduled to settle on June 24, 2026.

BNP Paribas, Citigroup, HSBC (B&D), J.P. Morgan, MUFG, and Standard Chartered Bank are acting as Joint Lead Managers and Bookrunners for the transaction, according to the Treasury. —VBL, GMA News