PH taps global debt market with new US dollar bond sale
The Marcos administration is set to issue benchmark-sized global bonds this week. The Philippine government is returning to the international debt market as it seeks to provide additional budgetary support and repay a portion of government borrowings.
The planned US dollar-denominated bonds are expected to raise at least $500 million across three tranches of 5.5 years, 10 years and 25 years. They will mature in 2031, 2036 and 2051.
The transaction is scheduled to be settled on Jan. 27.
According to the Bureau of the Treasury (BTr), the sale builds on a “robust track record of successful issuances.”
These include the dual-currency issuance of $2.25 billion and €1 billion in January 2025, a $2.5 billion triple-tranche offering in August 2024 and a $2 billion dual-tranche offering in May 2024.
”We have seen favorable market conditions for the Republic to return to the international capital markets today,” National Treasurer Sharon Almanza said.
“Anchored on stable fundamentals and our recent credit affirmation, this transaction reflects our proactive and strategic approach to secure cost-efficient funding while advancing the national government’s development priorities,” she added.
Finance Secretary Frederick Go said the sale points to the government’s “sound fiscal policy and sustainable development.”
“We are confident that our policy direction and reform agenda will continue to resonate with the global investment community and support a successful outcome for this offering,” Go said.
Meanwhile, Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the timing of the issuance is “sensible.” He noted that global markets have been “constructive.”
“Investors remain receptive; recent issuances saw strong demand. So tapping markets now allows the government to secure cheaper, longer-term financing, while sentiment is still in our favor,” Ravelas said.
On the Philippine peso’s volatility, Ravelas said the impact on the issuance will depend on external factors.
The planned issuance comes as the global market reels from US President Donald Trump’s fresh threats of tariffs on Europe as he escalates his plans to take control of Greenland.
The peso has been hitting historic lows in the past few months, with the recent record low at 59.46 per dollar.
Yet, the planned issuance has received an investment-grade rating of “Baa2” from Moody’s Ratings, “BBB+” from S&P Global Ratings, and “BBB” from Fitch Ratings.
The three ratings indicate that the country’s credit profile is considered of moderate risk and that the government is capable of meeting its financial commitments.
