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State-run Development Bank of the Philippines (DBP) is looking at issuing peso-denominated bonds next year as part of its fundraising efforts to recoup the ₱25-billion capital it injected into Maharlika Investment Corp. (MIC).
On the sidelines of the DBP’s event, DBP Executive Vice President Carel D. Halog confirmed that the government-run lender is targeting to sell bonds next year.
“We’re looking at [issuing bonds] next year. If ever we’ll do a bond sale, we’ll do it probably in the first or second half of next year,” Halog told reporters last week.
Halog also said the DBP is eyeing the issuance of its securities in pesos, but this plan remains under review.
“We’re thinking more of a peso issue. We have a number in mind, but we don’t want to disclose it yet until we’ve firmed it up,” Halog said.
He said the bonds could have a medium-term tenor, or maturities within five years, adding that investor appetite would play an important part in determining the tenor.
According to the Asian Development Bank’s (ADB) latest issue of the Asia Bond Monitor report, peso-denominated bond issuances in the Philippines accelerated in the third quarter of the year, hitting ₱2.9 trillion as the Bangko Sentral ng Pilipinas (BSP) continued to cut key borrowing costs.
Banks accounted for 60 percent of corporate bond issuance in the third quarter, totaling ₱213.3 billion.
Since the BSP started its easing cycle in August last year, key borrowing costs have been reduced by a cumulative 175 basis points (bps) to 4.75 percent from 6.5 percent prior to the cycle.
Halog said the planned bond sale for next year will form part of the programmed ₱120 billion in bonds. It will also be issued in at least six tranches.
It can be recalled that governance concerns about public infrastructure spending, particularly graft in flood control, played a major role in the central bank’s recent easing. The BSP also noted its dimmer growth outlook.
DBP President and Chief Executive Officer (CEO) Michael O. de Jesus told reporters the bank expects gross domestic product (GDP) growth to average around four to five percent in 2026, following the sharp slowdown in the third quarter of 2025.
