Philippines Taps Global Markets with $3.29B Bond Sale

In a statement, the BTr said the issuance included $2.25 billion from 10-year and 25-year U.S. dollar bonds and €1 billion ($1.04 billion) from a 7-year euro bond.

The 25-year dollar bond and 7-year euro bond will be issued under the Sustainable Finance Framework.

“This is the Republic’s first-ever euro sustainability bond and marks its return to the euro bond market since April 2021,” the BTr stated.

The 10-year dollar bond was priced at T+90 basis points, narrowing by 30 basis points from the initial guidance of T+120 basis points. The 25-year sustainability bond was set at 5.9%, lower than the initial estimate of around 6.1%.

The 7-year euro sustainability bond was priced at mid-swaps plus 125 basis points, decreasing by 35 basis points from the initial guidance of mid-swaps plus 160 basis points.

"Despite market volatility, the success of this offering highlights the Republic’s ability to take advantage of favorable market conditions and execute a large-scale dual-currency transaction. Strong demand and sustained orderbook growth across U.S. dollar and euro markets demonstrate investor confidence in the Republic’s credit standing and long-term economic outlook," the BTr said.

The BTr added that the transaction is scheduled to be settled on February 4.

The dollar bonds received positive credit ratings, with S&P Global Ratings assigning a "BBB+" to the dollar bonds, while Fitch Ratings gave both the dollar and euro bonds a "BBB" rating, indicating good credit quality.

The proceeds will be used to finance general budgetary needs and projects that align with the country's sustainability objectives.

“With improving market conditions this week, we saw a strategic opportunity for the Republic to re-enter the capital markets. Our objective is to leverage current market momentum to secure optimal financing terms ahead of potential uncertainties. We appreciate the ongoing support of our investors,” National Treasurer Sharon Almanza said.

Finance Secretary Ralph Recto stated that the successful issuance reflects investor confidence in the country’s economic direction.

“The success of this issuance demonstrates our ability to capitalize on favorable market conditions. It also highlights investor trust in the Marcos Jr. administration’s leadership and policies, as recognized by the market and reinforced by the country’s improving credit rating trajectory,” Recto said.

He further emphasized that the administration’s commitment to strong investor relations is evident through regular engagement, including discussions at this year’s World Economic Forum (WEF) in Switzerland.

"We have consistently communicated our strategies for achieving robust socioeconomic growth, which is why we remain confident that investors will continue to support the Philippine growth narrative,” Recto added. (PNA)


Source:
PH raises $3.3B in dual-currency bond offering  | Philippine News Agency. (2025). Pna.gov.ph. https://www.pna.gov.ph/articles/1242620

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