THE Philippines has raised $2.5 billion from a triple-tranche dollar bond offering, with strong demand allowing the government to increase the size of the transaction and secure more favorable borrowing terms.
The issuance of 5.5-year, 10-year and additional 2051 global bonds completed the foreign borrowing program for this year, the National Treasury said on Wednesday.
The fundraising attracted orders that were 4.4 times the initial size of $2 billion, prompting the government to upsize the transaction by $500 million.
National Treasurer Sharon Almanza said recent market conditions presented an opportunity for the Philippines to return to international debt markets and lock in attractive financing terms before uncertainties potentially re-emerge.
“Our aim is to harness this market momentum in order to secure the most efficient cost dynamics in anticipation of potential future market uncertainties,” she said.
The transaction comprised $550 million in 5.5-year bonds, $1.65 billion in 10-year bonds and a $300-million tap of existing 2051 bonds that were first issued in January this year.
Settlement is scheduled for June 24.
The 5.5-year bond was priced at 4.699 percent, equivalent to 55 basis points (bps) above US Treasuries. The 10-year tranche was priced at 5.355 percent, or 92.5 basis points above, while the additional 2051 bonds were priced at 5.850 percent.
The initial price guidance for the 5.5, 10 and 2051 bonds was T+85 bps, T+125 bps and 6.100 percent, respectively.
The final pricing represents “a significant tightening of pricing for all tranches from its IPG in the context of 25-32.5 bps,” the Treasury said.
“All three tranches of the global bonds were priced with minimal to negative new issue premiums,” it added.
Finance Secretary Frederick Go said the reception to the offering indicated “strong confidence in the Philippines’ economic resilience and foundational stability, even amidst prevailing challenging market conditions and short-lived execution windows.
The latest transaction followed a $2.75-billion triple-tranche global bond issuance in January this year, a dual-currency offering worth $2.25 billion and €1 billion in January 2025 and a $2.5-billion triple-tranche transaction in August 2024.
S&P, Moody’s and Fitch have issued BBB+, Baa2 and BBB ratings to the offering in line with the Philippines’ sovereign credit rating.
BNP Paribas, Citigroup, HSBC, J.P. Morgan, MUFG and Standard Chartered Bank served as joint lead managers and bookrunners for the offering.
