THE government has returned to the international capital markets with a new triple-tranche dollar bond offering, seeking to take advantage of what officials said were improving global market conditions and sustained investor confidence.
The Bureau of the Treasury on Tuesday announced a triple-tranche issuance of 5.5-, 10- and 25-year dollar-denominated global bonds. The 25-year will be a further issue of 2051 dollar bonds offered in January. It will be the second dollar bond sale this year following January’s identical triple-tranche offering that raised $2.75 billion. That consisted of $500 million in 5.5-year bonds with a 4.25-percent coupon, $1.5 billion in 10-year bonds at 5 percent and $750 million in 25-year bonds at 5.75 percent. “This transaction marks the republic’s second foray into the international capital markets for 2026, building on a robust track record of successful issuances, following a triple-tranche issuance of $2.75 billion in January 2026, a dual-currency issuance of $2.25 billion and 1 billion euros in January 2025 and a $2.5 billion triple-tranche offering in August 2024,” the Treasury said in a statement. Pricing for the latest offering was initially set at +85 basis points over US Treasuries for the 5.5-year tranche, T+125 basis points for the 10-year and 6.100 percent for the 2051 bonds. The transaction was to be priced later on Thursday during the New York trading session. Proceeds from the sale will be used for general budget financing, the Treasury said. National Treasurer Sharon Almanza told reporters that the offering would be part of the $2.5 billion remaining in this year’s borrowing program. The bonds are expected to be rated Baa2 by Moody’s, BBB+ by Standard & Poor’s and BBB by Fitch and the transaction is scheduled to be settled on June 24, it added. BNP Paribas, Citigroup, HSBC, JP Morgan, MUFG and Standard Chartered Bank were said to be acting as joint lead managers and bookrunners for the transaction. “The republic’s return to the international capital markets comes at an opportune time, amid improving market sentiment and favorable global developments,” Almanza said in the Treasury statement. “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,” she added. Finance Secretary Frederick Go, meanwhile, said: “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.” Go also told reporters on Tuesday that the government was considering a return to the retail treasury bond market in the second half as it seeks to secure financing for its programs. “We are closely monitoring market conditions and assessing the appropriate timing for a potential retail treasury bond offering,” he said.“We may be issuing retail treasury bonds in the second half of the year,” he added, but did not provide a fundraising target. Retail treasury bonds are peso-denominated government securities offered to individual investors. They allow the government to diversify its funding sources while encouraging broader public participation in financing state programs and infrastructure projects. Go said that easing market volatility was giving the government greater flexibility in determining the most cost-effective funding instruments and currencies. “So it gives us more options on what and where to borrow from,” he said, adding that if an end to hostilities in the Middle East holds, the government could benefit from lower inflation and declining interest rates, potentially reducing its borrowing costs. “If the ceasefire holds, then I think it will give us, as I said earlier, a lot of optionalities on what to borrow, how much to borrow and where to borrow from,” Go said. The administration needs P2.68 trillion this year to finance its programs and projects, slightly higher than 2025’s P2.6 trillion. Most of the funding will come from domestic sources at P2.05 trillion, lower than the P2.11 trillion programmed in 2025.
