Phl back to global debt market

The Philippines has re-entered the international bond market for the first time this year with a dual-tranche offering of US dollar-denominated bonds, featuring both 10-year and 25-year maturities.

National Treasurer Sharon Almanza confirmed that the government aims to raise at least USD500 million through these US dollar bonds. 

The Bureau of the Treasury (BTr) has provided initial pricing guidance for the 10-year tranche at T+120bps and for the 25-year tranche at around 6.100%.

In addition to the US dollar bonds, the Philippines will also offer a seven-year euro-denominated bond with an Environmental, Social, and Governance (ESG) label. 

This marks the country’s first-ever EUR sustainability bond and its return to the euro bond market since April 2021, with an initial price guidance of MS+160 bps.

The funds raised from this global bond issuance will support the government’s fiscal requirements and infrastructure projects. 

Almanza highlighted that the current market conditions present a timely opportunity for the Philippines to tap into the capital markets, enabling the country to secure favorable financing before potential economic uncertainties arise.

The dollar bonds have received positive ratings, with S&P Global Ratings assigning a “BBB+” rating, and Fitch Ratings giving both the dollar and euro bonds a “BBB” rating. These ratings reflect the Philippines’ strong economic standing despite global economic challenges.

Finance Secretary Ralph Recto expressed confidence in the country’s bond offering, citing the administration’s commitment to strong investor relations and frequent communication of its economic strategies. 

He also shared that the government plans to raise a total of USD3.5 billion from global bond issuances in 2025.