PHL to issue anew US dollar global bonds
PEOPLE march during a proGreenlanders demonstration, in Copenhagen, Denmark, Saturday, January 17, 2026. EMIL HELMS/RITZAU SCANPIX VIA AP
By Reine Juvierre S. Alberto
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HE Republic of the Philippines (ROP) returned to the international debt market for the first time this year on Tuesday, offering a benchmarksized, three-tenor US dollar-denominated global bond to lock in funding amid continued liquidity and demand for ROP securities. National Treasurer Sharon P. Almanza said each tranche of the fixed-rate dollar bond will be issued at a benchmark size, with maturities of 5.5 years, 10 years and 25 years.
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The initial price guidance for the 5.5-year tranche is around 70 basis points over Treasuries, while the 10-year bond is at 100 basis points over Treasuries and 5.900 percent for the 25-year tranche. The offering is expected to open during Tuesday’s New York trading session, while the transaction will settle on January 27, 2026. International credit watcher Moody’s Ratings has assigned “senior unsecured” ratings of Baa2 to the global bond offering to be issued under the government’s existing shelf program. Moody’s said the dollar bonds will be ranked “pari passu” with
the country’s “current and future senior unsecured external debt obligations.” The proceeds from the issuance will be used for general purposes, including budgetary support and the repayment of a portion of the government’s borrowings, according to Moody’s. S&P Global has also assigned its “BBB+” long-term foreign currency issue rating to the bonds that the Philippines will issue. The bonds represent “direct, general, unconditional, unsecured and unsubordinated obligations” of the Philippines, S&P Global said.
“They rank equally with the sovereign’s other unsecured and unsubordinated debt obligations,” it added. The joint bookrunners for the dollar bond offering are BofA Securities, Deutsche Bank, HSBC (B&D), J.P Morgan, Morgan Stanley, Standard Chartered and UBS1. The issuance comes against the backdrop of souring investor confidence caused by the flood control scandal that weighed on its economic growth. “In spite of the recent government scandal, we didn’t see investors demanding a higher spread See “US dollar,” A2
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BOP SWINGS TO DEFICIT AS IMPORTS RISE IN ’25 www.businessmirror.com.ph
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Wednesday, January 21, 2026 Vol. 21 No. 101
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Budget gaps seen persisting
By Andrea E. San Juan
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@andreasanjuan
HE $5.7-billion deficit in the Philippines’s balance of payments (BOP) in 2025, a reversal of the $609-million surplus posted in 2024, can be attributed to importdriven demand, weaker exports and investment flows in recent months, according to analysts. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that the country’s balance of payments (BOP), a measure of the country’s economic transactions with the rest of the world, registered an $827-million deficit in December 2025, bringing the full-year outcome to a deficit of $5.7 billion. The $827 million deficit posted in December 2025 is the largest gap in the balance of payments in eight months or since April 2025. However, this is narrower than the $1.508 billion in December 2024 but wider than the $225 million deficit posted in November 2025. Given the latest data on the balance of payments, analysts now have their eyes on how fast the country’s outbound shipments and investments can pick up. Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort pointed to the “continued trade deficit or net imports of the country recently,” adding, the gap may be “partly due to weather-related disruptions and some political noise since September 2025 that led to some local market volatility.” Jonathan Ravelas, senior adviser at Reyes Tacandong & Co. said in a Viber message that the wider BOP deficit “simply reflects strong domestic demand driving imports faster than exports and investment flows can catch up.” Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo R. Rivera said the wider deficit in the balance of payments “reflects a mix of weaker capital inflows, softer FDI [foreign direct investments] and continued net outflows from portfolio investments, alongside a persistently wide trade deficit driven by imports.” “BOP position will hinge on FDI recovery, export performance, remittance growth, and global financial conditions, particularly US interest rates,” Rivera said. Echoing the sentiment of the local think tank’s senior research fellow, Ravelas said “They key watchpoint is how fast exports and FDI rebound, but overall external position remains resilient.” See “Imports,” A2
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BONG IN THE FLOODLIGHT Former Senator Ramon “Bong” Revilla Jr. is brought to the Sandiganbayan on Tuesday, January 20, 2026, for processing after voluntarily surrendering the previous night following the issuance of a warrant of arrest and hold-departure order. Revilla faces malversation and graft charges linked to an alleged P92.8-million ghost flood-control project in Pandi, Bulacan, which prosecutors say was reported as completed despite no substantial work being done. He was turned over to the anti-graft court’s Third Division for the issuance of commitment orders and booking procedures as the case proceeds. NONOY LACZA
FPI SAYS SINGLE WINDOW KEY TO REDUCING TRADE DELAYS By Bless Aubrey Ogerio
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@blessogerio
HE integration of around 40 government agencies into the National Single Window–Integrated Trade Facilitation Platform (NSW ITFP) is poised to cut delays and streamline trade in the country, the Federation of Philippine Industries (FPI) said. The platform allows businesses to submit a single digital application for multiple permits and clearances, replacing the cumbersome system that once required traders to visit different offices for each approval, it said. “This is a herculean task, but
one that needs to have been started ‘yesterday,’ so our country can finally move forward and be at par, to a certain extent, with our Asean neighbors,” FPI said in a statement. Food importers, for instance, previously had to secure signoffs from the Food and Drug Administration, the Department of Agriculture and Customs. Meanwhile, chemical traders navigated the Philippine National Police, the Department of Environment and Natural Resources and Customs. Electronics and car importers faced a similarly complex maze, compounded by local government permits. According to the federation,
the agencies being integrated issue a range of import and export licenses, permits and clearances. By centralizing these processes, the NSW ITFP is expected to lower transaction costs, accelerate approvals and make supply chains more predictable. Once fully operational, the platform will link to the Asean Single Window, positioning Philippine traders to compete more effectively with Singapore, Malaysia, Thailand and Vietnam— countries that have had national single windows in place since 2008-2016. On the other hand, the FPI said that the NSW ITFP complements the Bureau of Internal
Revenue’s Digital Transformation (DX) Roadmap 2025-2028, which aims to modernize tax enforcement. Under the roadmap, audits will be guided by data and risk analysis rather than discretion, artificial intelligence will flag potential compliance issues, ICT systems will be upgraded, and taxpayer portals will be modernized. “By 2028, the BIR envisions a system where compliance is predictable, transparent, and far less prone to abuse,” it said. For FPI, the two roadmaps together aim to reduce bureaucratic obstacles, lower costs, and support business growth. See “FPI,” A2
HE national government is unlikely to record budget surpluses despite its stringent fiscal oversight, particularly on infrastructure spending, according to Maybank. During the Philippine Macro and Market Outlook 2026, Maybank Securities Philippines Head of Equity Research Kervin Sisayan said the government will continue to run fiscal deficits even after cutting budgets for flood control and unappropriated programs. “There is a shift from infrastructure spending to a bit more social services in terms of government spending,” Sisayan said. “So, not necessarily there will be less spending, but it’s just reallocated towards more support for the people.” Sisayan said the fiscal deficit is expected to remain on a declining path, a development that could support one of the Marcos Jr. administration’s key targets of securing a credit rating upgrade. A credit upgrade, he added, would also serve as a vote of confidence in the country’s improving fiscal health. Maybank Investment Banking Group Economist Azril Rosli said the tighter scrutiny on government spending, notably on infrastructure, will result in improved governance rather than a pullback in fiscal policy. This could lead to more cautious disbursement and some delays in project rollout, which may temporarily slow spending growth in the near term, Rosli said. “As a result, the fiscal position could improve at the margin, but this should be seen as a function of timing and oversight rather than a shift toward austerity,” Rosli added. Rosli said the Philippines continues to face significant structural spending needs, including infrastructure gaps, climate resilience, social protection and human capital investments. “Any short-term improvement in the fiscal balance is more likely to be temporary, reflecting delayed expenditures rather than a sustained surplus position,” Rosli said. The government’s budget deficit widened to P1.26 trillion as of See “Budget,” A2
PESO EXCHANGE RATES n US 59.3960 n JAPAN 0.3757 n UK 79.7807 n HK 7.6183 n CHINA 8.5290 n SINGAPORE 46.2442 n AUSTRALIA 39.8725 n EU 69.1785 n KOREA 0.0403 n SAUDI ARABIA 15.8394 Source: BSP (January 20, 2026)