PH raises $2.5B via new global bond foray

MANILA, Philippines – The Marcos administration has raised $2.5 billion from its latest return to the international debt market, officially completing the government’s external commercial borrowing program for 2026.

According to the Bureau of the Treasury (BTr), demand for triple-tranche US dollar bonds went 4.4 times the initial $2-billion offering, allowing the government to upsize the transaction.

READ: $2.75B raised from Philippine global bond sale

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Broken down, the government raised $550 million from 5.5-year bonds at a yield of 4.699 percent, while the 10-year bonds generated $1.65 billion at a yield of 5.355 percent.

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The 25-year offering, which tapped the existing 2051 notes issued in January, raised $300 million at a yield of 5.850 percent.

The global bond sale marks the Marcos administration’s second offshore foray this year, following the $2.75-billion triple-tranche US dollar bond offering in January.

Notably, the June sale timely came as investors were pricing in the easing of the over three-month war in the Middle East following the tentative peace deal between the United States and Iran.

Finance Secretary Frederick Go said the strong demand for the second international bond offering reflected investor confidence in the Philippine economy.

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“The strong demand signifies strong confidence in the Philippines’ economic resilience and foundational stability, even amidst prevailing challenging market conditions and short-lived execution windows,” he said.

“This outcome reinforces the Republic’s progress toward economic growth, its adherence to sound fiscal policies, and its commitment to fostering sustainable and inclusive economic development,” he added.

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Meanwhile, National Treasurer Sharon Almanza said the recent favorable market conditions paved the way for the government’s return to offshore debt markets.

“Our aim is to harness this market momentum in order to secure the most efficient cost dynamics in anticipation of potential future market uncertainties. We continue to value the outstanding global support of the bond investor community through our journey,” she said.

The global bond sale received investment-grade ratings from the three major credit rating agencies.

Moody’s Ratings assigned a Baa2 rating, citing the country’s strong economic growth potential. Meanwhile, Fitch Ratings gave the bonds a BBB rating, while S&P Global Ratings assigned a BBB+ rating.

This year, the government plans to borrow P627.1 billion, or roughly $10.4 billion, from foreign creditors. According to the BTr, the latest global bond sale has completed its external borrowings for 2026.

Data from the Treasury showed that as of end-April, the government had already secured P280.5 billion in foreign borrowings, excluding financing activities undertaken in May and the latest June bond issuance.

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In total, the Marcos administration has tapped the international bond market four times. Aside from the two issuances this year, the government also raised $2.25 billion and 1 billion euros through a dual-currency offering in January 2025 and $2.5 billion through a triple-tranche bond sale in August 2024. INQ