Philippines prices USD 2.75 billion global bonds

The Republic of the Philippines has successfully priced its 5.5-year, 10-year, and 25-year U.S. dollar-denominated Securities and Exchange Commission (SEC)-registered fixed-rate Global Bonds amounting to USD 2.75 billion, marking its largest USD bond deal in more than three years.

The transaction represents the Republic’s first return to the global bond markets in 2026, following its USD 2.25 billion and EUR 1 billion issuances in January 2025 and a USD 2.5 billion triple-tranche global bond offering in August 2024.

On Jan. 20, 2026, the Republic announced initial price guidance of U.S. Treasuries plus 70 basis points for the 5.5-year tranche, Treasuries plus 100 basis points for the 10-year tranche, and a yield of 5.900 percent for the 25-year tranche.

Strong demand from high-quality global investors allowed the Republic to tighten pricing across all maturities from the initial guidance.

The 5.5-year and 10-year tranches were ultimately priced at Treasuries plus 50 basis points and Treasuries plus 80 basis points, respectively, representing a 20-basis-point tightening for each tranche.

The 25-year bond was priced at a yield of 5.750 percent, or 15 basis points tighter than the initial price guidance.

All three tranches were priced with minimal to no new issue premiums, reflecting a favorable market reception despite ongoing volatility in global credit markets.

The Global Bonds are expected to be rated Baa2 by Moody’s Investors Service, BBB+ by Standard & Poor’s, and BBB by Fitch Ratings.

Settlement of the transaction is expected on Jan. 27, 2026, according to the Bureau of the Treasury.

The Bureau said the successful offering highlights the Philippines’ ability to navigate a challenging global macroeconomic environment characterized by elevated market volatility and emerging geopolitical risks.

Finance Secretary Frederick D. Go said investor response underscored continued confidence in the country’s economic fundamentals.

“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. We are encouraged by the acknowledgment of our solid recovery path, sound fiscal discipline, and our focused efforts to advance sustainable and broad-based economic progress,” Go said.

National Treasurer Sharon P. Almanza said the transaction achieved tight pricing despite heightened uncertainty in global markets.

“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 in the country’s credit strength and long-term development trajectory,” Almanza said.

Proceeds from the sale of the 5.5-year, 10-year, and 25-year Global Bonds will be used for general purposes of the Republic, including budgetary support.

The joint lead managers and bookrunners for the transaction were Bank of America (BofA) Securities, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank, and UBS.

The Bureau of the Treasury reiterated that credit ratings are not recommendations to buy, sell, or hold securities and may be revised or withdrawn at any time.