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Manila Bulletin devider Business devider The Stock Market devider PAL taps offshore debt markets again as investor demand surges

PAL taps offshore debt markets again as investor demand surges

Published Jul 31, 2026 02:55 pm
Flag carrier Philippine Airlines (PAL) expanded its debut international bond offering by $50 million, tapping strong demand from global investors to raise its five-year debt issuance to $350 million.
In a disclosure to the Philippine Stock Exchange, the airline’s parent company PAL Holdings Inc. said the additional fixed-rate senior notes were issued through Primero Agila Ltd., a wholly owned Cayman Islands subsidiary of the carrier.
The tap issuance carries a coupon rate of 7.75 percent and will be consolidated with the original $300 million tranche due 2031 that settled on July 16.
Proceeds from the dollar-denominated debt issuance—which translates to more than ₱20.5 billion at current exchange rates—will support the flag carrier’s long-term capital requirements, fleet modernization, and international flight expansion as it builds on its post-restructuring turnaround.
The original $300 million transaction generated an orderbook exceeding $1.4 billion, reflecting an oversubscription rate of roughly 4.5 times. The notes are unconditionally and irrevocably guaranteed by PAL and affiliate Air Philippines Corp. They will be listed on the Singapore Exchange Securities Trading Ltd.
The debt sale marks the first rated high-yield bond offering from a Philippine issuer in more than 10 years. It is also the first unsecured rated high-yield bond issued by an Asian airline and the first-ever rated airline bond originating from South or Southeast Asia. Moody’s Ratings and Fitch Ratings both assigned credit ratings to the transaction prior to launch.
“This landmark bond offering is a powerful affirmation of Philippine Airlines' transformation and the confidence that global investors have in our long-term vision and growth ambitions,” PAL Holdings President Lucio C. Tan III said in a statement. 

“This allows us to strengthen our network and continue to elevate the travel experience for our customers. It reinforces Philippine Airlines' role in promoting tourism, trade, investment and economic growth for the Philippines,” he added.

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Philippine Airlines (PAL) PAL Holdings Inc. Lucio Tan III
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