The Philippines is returning to the international capital markets with a triple-tranche offering of US dollar-denominated senior unsecured bonds to support its 2026 budget, according to documents from credit rating agencies.
The sovereign issuer said the initial pricing guidance sets the 5.5-year tranche at T+70 basis points area, T+100 basis points area for the 10-year tranche and 5.900 percent for the 25-year tranche.
The Bureau of the Treasury (BTr) said the transaction is scheduled to settle on Jan. 27, 2026, with its price set to be determined during a New York trading session later within the day.
Finance Secretary (DOF) Frederick Go said the transaction underscores the government’s dedication to a sound fiscal policy and sustainable development, adding that the Marcos administration remains committed to promoting a “strong and inclusive” socioeconomic growth.
“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,” said Go.
National Treasurer Sharon Almanza said the Philippines has seen favorable market conditions that bolstered the government’s return to the international capital markets.
“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,” said Almanza.
The sovereign issuer is offering notes with maturities of 5.5 years, 10 years and 25 years. Proceeds from the sale are intended for general purposes, including budgetary support.
Fitch Ratings assigned the proposed bonds a BBB rating, which is consistent with the country’s long-term foreign-currency issuer default rating. The agency affirmed this rating with a stable outlook on April 29, 2025.
S&P Global Ratings assigned a BBB+ long-term foreign currency issue rating to the benchmark-size offering. The agency noted that the bonds represent direct, unconditional and unsubordinated obligations that rank equally with other unsecured debt of the Philippines.
Moody’s Ratings assigned a Baa2 rating to the US dollar bond offering, supported by the government’s strong access to global funding markets, a stable banking system and ample foreign currency reserves that can weather capital flows volatility.
The Philippines seeks to finance its lingering budget shortfall.
Data from the Bureau of the Treasury showed the national government recorded a budget deficit of P1.11 trillion as of end-October 2025, up from P963.9 billion in the same period in 2024.
The 10-month fiscal gap represents 70.83 percent of the revised P1.56 trillion full-year target for 2025, suggesting the government remains on track with its fiscal consolidation goals.
