Citing the need to finance the country’s ₱6.793 trillion national budget for fiscal year (FY) 2026, the Philippines has returned to the global debt markets with a triple-tranche offering of United States (US) dollar-denominated global bonds.

In a statement issued on Tuesday, June 16, the Bureau of the Treasury (BTr) said the offering includes 5.5-year and 10-year tranches, as well as a tap of the existing 5.750 percent 2051 dollar bonds originally issued in January 2026.

“This transaction marks the republic’s second foray into the international capital markets for 2026, building on a robust track record of successful issuances,” the BTr said. According to the bureau, the national government intends to use the proceeds for general budget financing.

To guide potential investors, the BTr has set initial price expectations for the latest offering. It is looking at a rate of 85 basis points (bps) over US Treasuries for the 5.5-year bonds and 125 bps over the benchmark for the 10-year bonds. For the reopening of the 2051 bonds, the initial price has been pegged at 6.100 percent. These figures represent the starting point for negotiations, with final rates expected to be locked in later today during the New York trading session. The transaction is scheduled to settle on June 24, 2026.

To reinforce investor confidence, the global bonds maintain investment-grade expectations. The BTr noted that the securities are expected to be rated Baa2 by Moody’s, BBB+ by Standard & Poor’s, and BBB by Fitch. Moody’s Ratings has already assigned an investment-grade Baa2 rating to the offerings.

The issuance is being managed by a consortium of global financial institutions—including BNP Paribas, Citigroup, HSBC, J.P. Morgan, MUFG, and Standard Chartered Bank—acting as Joint Lead Managers and Bookrunners. This latest offering follows a highly active period for Philippine sovereign debt, which included a $2.75 billion issuance in January 2026 and a dual-currency offering of $2.25 billion and €1 billion in early 2025.

Meanwhile, Department of Finance (DOF) Secretary Frederick D. Go disclosed to reporters during a media roundtable on Tuesday that the government will issue retail treasury bonds (RTBs) in the second half of 2026.

“We are closely monitoring market conditions and assessing the appropriate timing for a potential RTB offering. We may be issuing RTBs in the second half of the year,” Go said. The BTr previously raised a total of ₱425.6 billion from RTBs in 2025.

Go noted that recent geopolitical developments, such as the temporary ceasefire between the US and Iran, have already contributed to more favorable borrowing conditions.

“As you know, the US and Iran have declared a ceasefire, and interest rates have come down. This is good news, as it gives us more options on where and from whom to borrow,” the Finance chief said.

Regarding the government’s foreign borrowing strategy, Go confirmed that the Philippines will maintain its presence in international markets, with a clear preference for the US dollar.

“I would say most probably the dollar will always be the biggest chunk of our foreign borrowings,” Go said, though he added that the government is not precluded from pursuing other currencies like the yen or the euro.

Go clarified that the timing of the borrowing is driven by strategic choice rather than necessity. “There’s no pressing need. You just have to determine what is the best mix, what’s the best option at any point in time,” he noted.