The Philippines has confirmed that it can access the global bond market for a third time this year, despite ongoing market volatility.
Citigroup’s chief executive officer and banking head for the Philippines stated that the country still has an opportunity to tap international investors, emphasizing that success depends on aligning client priorities with market conditions.
He highlighted the importance of timing, noting that any capital‑raising effort must fit within the government’s broader strategy. The decision to issue bonds should be both strategic and tailored to each client’s needs.
Pricing of the bonds will reflect global market dynamics, with global developments largely determining yields and investor appetite.
Last month, the government raised $2.5 billion through a triple‑tranche dollar bond offering, selling $550 million in 5.5‑year bonds, $1.65 billion in 10‑year bonds, and $300 million in existing 2051 bonds. This transaction concluded the year’s external commercial borrowing program.
In January, the Philippines returned to the offshore debt market after a year, issuing $2.75 billion in its largest US dollar‑denominated bond offering in over three years. The tranche included $500 million in 5.5‑year bonds, $1.5 billion in 10‑year papers, and $750 million in 25‑year bonds.
Manish Bajaj, head of Corporate Banking at Citi Philippines, noted that recent economic challenges have prompted clients to diversify beyond the domestic market, increasing interest in both regional and global investment opportunities.
The Philippine economy has slipped into a post‑pandemic low growth of 2.8% in the first quarter, hampered by flood control scandals and the Middle East‑driven energy crisis. Economic managers anticipate continued weakness this year, with the Development Budget Coordination Committee reducing the growth target to 3.5%–4.5% from the previous 5%–6% range.
