Philippines raises $2.5B from upsized bond sale

The Philippines raised $2.5 billion from its triple-tenor offering of US dollar-denominated global bonds, exceeding the initial offering size of $2 billion due to strong interest from international investors, the Bureau of the Treasury (BTr) reported.

According to the BTr, the upsize came as the orderbook reached a 4.4x oversubscription rate, with all three tranches priced with minimal to negative new issue premiums, completing the government’s foreign commercial borrowing program for the year.

The Philippines priced the $550-million 5.5-year bond at a reoffer yield of 4.699%, the $1.65-billion 10-year bond at 5.355%, and the $300-million Tap of 2051 Global Bonds at 5.850%.

Proceeds are intended for general budget financing, after the government issued a triple-tranche $2.75-billion offer in January 2026, a dual-currency 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.

“The second international bond offering of the Republic for 2026 continues to be met with a positive reception from global investors,” Finance Secretary Frederick Go said in a statement.

“The strong demand signifies strong confidence in the Philippines’ economic resilience and foundational stability, even amidst prevailing challenging market conditions and short-lived execution windows,” he added.

The offer was rated Baa2 by global credit watcher Moody’s Ratings, BBB+ by S&P Global Ratings, and BBB by Fitch Ratings.

“Recent favorable market conditions presented an opportunity for the Republic to re-enter the international capital markets,” National Treasurer Sharon Almanza said.

“Our aim is to harness this market momentum in order to secure the most efficient cost dynamics in anticipation of potential future market uncertainties. We continue to value the outstanding global support of the bond investor community through our journey,” she added. —VBL, GMA News