Philippine raises $3.3 billion via global bond issue

MANILA, Philippines — The Philippines raised $3.3 billion from the issuance of dollar and euro-denominated sustainability bonds, according to the Bureau of the Treasury (BTr).

The total issuance amounted to $2.25 billion and 1 billion euros ($1.04 billion), underscoring the Philippines’ strong presence in the international debt markets.

The euro seven-year bond is part of a dual-currency global offering that also includes dollar-denominated tranches. It also demonstrates the Philippines’ ongoing commitment to its environmental, social and governance (ESG) goals.

“The euro seven-year bond will be used for general budget financing and to finance/refinance assets in line with the Republic’s Sustainable Finance Framework,” the BTr said.  

The euro bond offering coincides with the Philippines’ dollar global bond issuance, which includes a 10-year conventional bond and a 25-year sustainability tranche. Both the dollar 25-year and euro seven-year bonds are issued under the country’s Sustainable Finance Framework.

National Treasurer Sharon Almanza said the government saw an opportune window for the Philippines to reenter the capital markets.

“Our goal is to capitalize on the current market momentum to secure the most efficient cost dynamics ahead of potential uncertainties in the near future. We look forward to the continued support of our valued investors,” she said. 

Meanwhile, Finance Secretary Ralph Recto said the administration’s commitment toward stronger investor dialogue is evident in their frequent investor engagements. 

“We have constantly communicated our strategies to achieve robust socioeconomic development for the country, and hence, we are confident that our investors will remain receptive to the Philippine story,” he said.

HSBC, Standard Chartered Bank and UBS are the joint sustainability structuring banks, reinforcing the ESG credentials of the bond. 

Citigroup, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as joint lead managers and bookrunners for the transaction.

The euro seven-year bond is expected to be priced during the New York session, with strong investor interest anticipated given the country’s investment-grade credit ratings and renewed emphasis on sustainability in its funding initiatives.

This dual-currency issuance marks the Philippines’ seventh G3 ESG bond offering, solidifying the country’s position as a key player in sustainable finance within emerging markets.