PH Announces Launch of SEC-Registered Global Bond Issuance in USD and EUR

On 23rd January 2025, the Republic of the Philippines announced its USD 10-year and 25-year dual-tranche SEC-registered Fixed Rate Global Bonds (the Global Bonds or the Notes) at Asia open, this was followed by an announcement of its 7-year EUR sustainability bonds at Europe open on the same day. This marks the Republic’s first ever EUR sustainability bond and also marks the Republic’s return to EUR bond markets since April 2021. The USD 25-year Global Bond and EUR 7-year will be issued under the Republic’s Sustainable Finance Framework, marking the Republic’s seventh G3 ESG bond offering.

This transaction also follows the Republic’s USD2.5 billion triple-tranche bond offering in August 2024, USD 2 billion dual-tranche bond offering in May 2024, USD 1 billion 5.5-year Sukuk in November 2023, USD 3 billion triple-tranche bond offering in January 2023, USD 2 billion triple-tranche bond offering in October 2022, JPY 70.1 billion four-tranche Samurai bond offering in April 2022 and USD 2.25 billion triple-tranche bond offering in March 2022.

The IPGs of USD 10-year and 25-year tranches were announced at T+120bps area and 6.100% area respectively, while the IPG of the EUR 7-year tranche was announced at MS+160 bps area. The transaction is expected to be priced today during New York session.

​The Republic’s National Treasurer Sharon P Almanza remarked, “With a constructive market developing over the week, we see an opportune window for the Republic 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.”

The Republic’s Finance Secretary Ralph Gonzalez Recto stated, “The Marcos administration's commitment towards stronger investor dialogue is evident in our frequent investor engagements. We have constantly communicated our strategies to achieve robust socioeconomic development for the Republic, and hence, we are confident that our investors will remain receptive to the Philippine story.”

The Republic intends to use the proceeds from the sale of the USD 10-year Global Bond for general budget financing while proceeds from the sale of the USD 25-year Global Bond and EUR 7-year bond will be used for general budget financing and to finance/refinance assets in line with the Republic’s Sustainable Finance Framework. HSBC, Standard Chartered Bank and UBS are acting as Joint Sustainability Structuring Banks.

​Citigroup, Goldman Sachs, HSBC (B&D), J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS are acting as Joint Lead Managers and Bookrunners for the transaction.