By the staff
The Philippines launched its first offshore bond sale of 2026, offering three tranches of U.S. dollar notes as it moved quickly to secure funding after credit rating agencies reaffirmed the country’s investment-grade standing.
Initial guidance was set at 70 basis points over Treasuries for the 5.5‑year tranche, 100 basis points for the 10‑year, and about 5.9% for the 25‑year bonds. Pricing is due in New York, with settlement on Jan. 27. Proceeds will fund the budget.
Finance Secretary Frederick Go said the deal reflects the administration’s 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,” he said.
National Treasurer Sharon P. Almanza said the government seized favorable market conditions.
“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,” she said.
The bonds are expected to be rated Baa2 by Moody’s, BBB+ by S&P Global Ratings and BBB by Fitch.
S&P said the securities are “direct, general, unconditional, unsecured and unsubordinated obligations of the Philippines” that “rank equally with the sovereign’s other unsecured and unsubordinated debt obligations.”
Moody’s assigned Baa2 senior unsecured ratings to the tranches maturing in 2031, 2036 and 2051, noting they
“will constitute direct, unconditional and unsubordinated obligations of the Government of the Philippines” and “will rank pari passu with all of the issuer’s current and future senior unsecured external debt obligations.”
Fitch also affirmed a “BBB” rating, in line with the sovereign’s long-term foreign-currency issuer default rating.
BofA Securities, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are joint lead managers and bookrunners.
