Manila: The government is aiming to raise at least USD1 billion from its triple-tranche offering of dollar-denominated bonds. In a statement on Tuesday, the Bureau of the Treasury (BTr) said the bonds consist of 5.5-, 10-, and 25-year tranches. Proceeds from the sale of the global bonds will be used for general budget financing, the BTr said. The 25-year offering will be a tap of the existing 5.750 percent 2051 USD Bonds issued in January 2026.
According to Philippines News Agency, this is the second time the Philippines has tapped the international capital markets this year, following a USD2.75 billion triple-tranche issuance in January 2026. The BTr said initial pricing guidance was announced at +85 basis points over US Treasuries for the 5.5-year tranche, T+125 basis points for the 10-year tranche, and 6.100 percent for the tap of the 2051 bonds.
"The National Government remains committed to fostering strong and inclusive socioeconomic growth. This transaction highlights our continued pursuit of prudent fiscal management and our broader development agenda," Finance Secretary Frederick Go said. "Against the backdrop of encouraging developments in global markets, we are confident that our policy direction will continue to be well received by the international investment community."
National Treasurer Sharon Almanza, meanwhile, said the return to the international capital markets comes at an opportune time amid improving market sentiment and favorable global developments. So far, the Philippines still has a USD2.5 billion borrowing plan for the rest of the year. "This transaction reflects our prudent and proactive approach to financing, allowing us to secure funding efficiently while supporting the National Government's priority programs and development objectives," Almanza said.
The global bonds are expected to be rated Baa2 by Moody's, BBB+ by Standard and Poor's, and BBB by Fitch. The transaction is scheduled to settle on June 24. BNP Paribas, Citigroup, HSBC (B and D), J.P. Morgan, MUFG, and Standard Chartered Bank are acting as joint lead managers and bookrunners for the transaction.
Aside from the triple-tranche global bonds, Go said the government is also planning to issue retail treasury bonds (RTBs) in the second half of the year. "We are closely monitoring market conditions and assessing the appropriate timing for a potential Retail Treasury Bond. We may be issuing Retail Treasury Bonds in the second half of the year," Go said in a separate briefing. "So, any decision regarding any issuance will take into account prevailing market developments and the government's financing requirements."
