Philippines launches multi-tranche US dollar global bonds

MANILA — The Republic of the Philippines on Tuesday announced the launch of a triple-tranche offering of US dollar-denominated global bonds, marking its first return to international capital markets in 2026.

The offering consists of 5.5-year, 10-year and 25-year fixed-rate securities that are registered with the U.S. Securities and Exchange Commission.

Fixed-rate global bonds are long-term debt instruments that pay investors a set interest rate over their life, providing predictable income while allowing governments to raise funds from overseas investors.

The transaction builds on the government’s recent borrowing record in global markets. In January 2025, the Philippines raised USD 2.25 billion alongside EUR 1 billion through a dual-currency issuance.

This followed a USD 2.5 billion triple-tranche offering in August 2024 and a USD 2 billion dual-tranche sale in May 2024, reflecting sustained access to international funding despite volatile global conditions.

Initial pricing guidance places the 5.5-year tranche at around 70 basis points above U.S. Treasury yields, the 10-year tranche at about 100 basis points over Treasurys, and the 25-year tranche at roughly 5.900%.

A basis point is one-hundredth of a percentage point and is commonly used to express differences in bond yields.

Final pricing is expected later Tuesday during the New York trading session.

The bonds are expected to receive investment-grade ratings of Baa2 from Moody’s Investors Service, BBB+ from S&P Global Ratings and BBB from Fitch Ratings.

Credit ratings assess a borrower’s ability to meet its debt obligations and play a key role in determining borrowing costs. Settlement of the transaction is scheduled for Jan. 27, 2026.

Finance Secretary Frederick D. Go said the issuance aligns with the administration’s broader economic agenda.

“The Marcos administration remains firmly committed to promoting strong and inclusive socioeconomic growth. This transaction underscores our steadfast dedication to 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.

National Treasurer Sharon P. Almanza cited favorable market conditions and recent credit affirmations as key factors behind the timing of the sale.

“We have seen favorable market conditions for the Republic to return to the international capital markets today. 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. We value the continued confidence and support of our investors,” Almanza said.

Proceeds from the bond sale will be used for general budget financing, supporting government expenditures across priority programs and public services.

The transaction is being arranged by a syndicate of global banks acting as joint lead managers and bookrunners, including BofA Securities, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS.

Government officials emphasized that credit ratings are not recommendations to buy or sell securities and may change over time.

The issuance is subject to securities laws in various jurisdictions, and any U.S. offering would be made through a formal prospectus containing detailed information about the Philippine government and its finances.