THE government has raised $2.75 billion from a triple-tranche dollar bond sale that marked a return to the international capital markets amid renewed global tensions.
“Notwithstanding elevated market volatility and geopolitical uncertainties, the transaction achieved tight pricing, a reflection of the Republic’s standing as a benchmark for high-quality emerging market credit and signals robust investor confidence ...,” National Treasurer Sharon Almanza said in a statement.
Finance Secretary Frederick Go, in the same statement, said “the exceptional reception for our first international bond issuance of 2026 demonstrates the trust global investors place in the Philippines.”
“Their response affirms the durability of our economic foundation despite challenging market conditions,” he added.
The offering consisted of 5.5-year, 10-year and 25-year bonds.
The initial price guidance was around 70 basis points over United States Treasuries for the 5.5-year bond, T+100 basis points for the 10-year bond and around 5.90 percent for the 25-year bond.
The Treasury said that strong investor interest allowed the government to tighten pricing, with the 5.5-year and 10-year bonds ultimately priced at 50 and 80 basis points over Treasuries, respectively, while the 25-year bond was priced at 5.75 percent.
The bonds were said to have issued with little to no new issue premium.
S&P, Moody’s and Fitch on Tuesday issued ratings of BBB+, Baa2 and BBB, respectively, in line with the country’s credit grade. The transaction is scheduled to be settled on Jan. 27.
“The Republic intends to use the proceeds from the sale of the 5.5-year, 10-year and 25-year global bonds for general purposes of the Republic, including budgetary support,” the Treasury said.
BofA Securities, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as joint lead managers and bookrunners for the transaction.
