The Bureau of the Treasury (BTr) has successfully launched its inaugural 10-year benchmark Fixed-Rate Treasury Note (FXTN), marking a significant milestone in the development of the Philippine domestic bond market.
Priced with a coupon rate of 6.375% per annum, the issuance raised an impressive Php135.0 billion during the initial auction, as demand soared to Php197.3 billion—6.6 times the original offering of Php30.0 billion.
This issuance is the first non-retail bond offering structured under an extended offer period, a move designed to promote liquidity and establish a reliable benchmark security through a single issuance.
The FXTNs will be available to investors from 15 April to 24 April 2025, unless the offer is closed earlier at the BTr’s discretion. The bonds will be issued on 28 April 2025, with a minimum investment of Php10.0 million, and in increments of Php1.0 million thereafter.
National Treasurer Sharon P. Almanza emphasized the significance of the offering:
“The successful launch of our first 10-year benchmark FXTN issuance reaffirms the Republic of the Philippines’ solid reputation and investor confidence in the country’s growth and credit story. This issuance not only ensures financing for the government’s priority programs but also supports our objective of building a resilient and efficient domestic fixed-income market.”
This strategic benchmark issuance is a key initiative under the Bureau’s capital market development agenda, aiming to improve secondary market liquidity, price discovery, and investor participation. The longer offer period format provides greater access to institutional investors and enhances market depth.
Proceeds from the issuance will support the national budget and fund priority government programs in critical sectors such as agriculture, infrastructure, education, and healthcare.
The offering is being led by the Development Bank of the Philippines and the Land Bank of the Philippines as Joint Lead Issue Managers, with support from BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation, and Security Bank Capital Investment Corporation as Joint Issue Managers.
