The Philippines raised P297.94 billion from its new 10-year treasury bonds after a debt exchange offer brought in an additional P62.94 billion, the Bureau of the Treasury (BTr) said Sunday.
The total proceeds for the new 10-year fixed-rate treasury notes (FXTN) 10-74 included P235 billion in “new money” raised earlier in the week. The BTr shortened the primary offer period after hitting its funding target on the first day, though the exchange leg remained open until Feb. 20.
The transaction allowed the government to swap five existing bond series for the new 2036 maturity. By consolidating these holdings, the Treasury aims to manage near-term debt maturities and improve market liquidity by establishing a large, liquid benchmark.
National Treasurer Sharon Almanza said the strong demand reflected continued investor confidence in the credit profile of the Republic.
“This transaction allowed us to establish a liquid benchmark while also using the exchange component to manage near-term maturities and support our broader debt strategy,” Almanza said.
The initial auction saw massive oversubscription with total tenders reaching P328.5 billion, far exceeding the original P30 billion offer.
The high demand allowed the BTr to price the notes at a coupon rate of 5.925 percent, which was below secondary market levels.
Of the new money raised, P107.07 billion came from the rate-setting auction while P127.93 billion was sourced through a subsequent tap facility.
The exchange offer targeted holders of FXTN 05-77, FXTN 03-29, RTB 10-05, RTB 15-01 and FXTN 03-30. These investors were given the opportunity to trade their securities at specific buyback prices for the new benchmark.
The BTr plans to reopen the FXTN 10-74 issue in future auctions throughout 2026 to further enhance its volume and support market-making activity.
