Philippines accepts 63B pesos in bond switch: Treasury
TL;DR
The Philippines raised 235 billion pesos in a bond sale with strong investor demand, driven by high yields and expectations of an interest rate cut. The government plans more offerings to diversify funding and manage debt amid slow economic growth.
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Philippines accepts 63B pesos in bond switch: Treasury
Philippines Completes 235-Billion-Peso Bond Sale Amid Strong Investor Demand
The Philippine government has successfully raised 235 billion pesos ($4.1 billion) through a recent bond issuance, closing the offering early due to robust investor interest. The sale, which targeted institutional investors, included an exchange option allowing holders of older bonds to swap their securities until the end of the week. This follows a similar 300-billion-peso bond sale in April 2025, which did not include a debt-exchange feature.
Analysts attribute the strong demand to higher yields and expectations of an upcoming interest rate cut by the Bangko Sentral ng Pilipinas (BSP). Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that 10-year bond yields could decline further to 5.8% by June 2026, from 5.925% recorded in early February. The Philippine economy, however, is growing at its slowest pace in 14 years outside pandemic conditions, reinforcing speculation of a sixth consecutive rate cut by the central bank.
The Bureau of the Treasury reported that borrowing costs have fallen by 50 basis points since their June 2025 peak, prompting officials to act swiftly on debt management plans. Treasurer Sharon Almanza announced plans for additional bond offerings targeting retail investors later in 2026, alongside potential returns to the international bond market.
The government projects total borrowings to rise by approximately 3% in 2026, reaching 2.68 trillion pesos. While the recent sale focused on institutional investors, future initiatives aim to diversify funding sources and stabilize long-term fiscal goals.
This development underscores investor confidence in the Philippine debt market despite broader economic challenges, with policymakers balancing fiscal prudence against the need to stimulate growth.
According to the report: Philippines Secures 235 Billion Pesos in Bond Sale Amid Strong Investor Interest, Bitget, February 2026.
