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The national government has raised ₱300 billion from its 10-year benchmark fixed-rate treasury notes (FXTNs), driven by strong investor confidence and the resilience of the domestic creditors and investors despite global economic uncertainties.
The 10-year benchmark FXTNs were issued at a fixed coupon rate of 6.375 percent per annum.
The notes were offered to a range of investors, including corporations, cooperatives, trust and retirement funds, provident funds, and other institutional buyers.
Settlement and listing on the Philippine Dealing & Exchange Corp.’s fixed income board are set for April 28.
According to the Bureau of the Treasury (BTr), these notes “attracted robust demand from the market during the auction date and the public offer period.” The public offering was initially set from April 15 to 24.
On April 15, the government kicked off its offering with strong demand from the market, receiving ₱197.3 billion in bids—6.6-times more than the minimum target of ₱30 billion. This enabled the BTr to raise a higher amount of ₱135 billion during the rate-setting auction.
This demand continued during the offer period, with the BTr raising an additional ₱165 billion in five days, bringing total bids to ₱307 billion.
After reaching its target size of ₱300 billion, the BTr decided to shorten the offer period, closing it on Wednesday, April 23.
National Treasurer Sharon P. Almanza said the inaugural public offering of 10-year benchmark FXTNs is “not only about raising funds—it’s about giving the market more ways to invest in their future and take part” in the government’s programs.
“Despite ongoing global economic uncertainties, the success of the FXTN offering highlights the strength of the domestic fixed-income market and investor confidence in government securities as stable investment options,” the BTr said in an April 24 statement.
It also said the offering shows the BTr’s commitment to building a strong local capital market and help finance important government projects in agriculture, infrastructure, education, and healthcare.
“Additionally, by establishing liquid benchmarks, the BTr provides reference points for price discovery and trading in the secondary market, bolstering liquidity and facilitating more efficient capital mobilization,” it said.
Government-owned Development Bank of the Philippines (DBP) and Land Bank of the Philippines (Landbank) acted as joint lead issue managers, while BDO Capital, BPI Capital, China Bank Capital, First Metro, PNB Capital, and Security Bank Capital served as joint issue managers for the FXTN public offering.
