Philippines set to soon sell debt in 500-peso denomination

Philippines set to soon sell debt in 500-peso denomination

The Philippine government is preparing to issue retail treasury bonds (RTBs) with a denomination of 500 pesos in the third quarter of 2025. Finance Secretary Ralph Recto announced that National Treasurer Sharon Almanza is spearheading the issuance, which is expected to raise around P200 billion [1].

Recto stated that the planned RTB float forms part of the government’s broader borrowing program to fund its budget requirements and support various projects. Retail treasury bonds are typically offered to small investors, providing a relatively safe investment option with higher yields compared to regular savings.

The issuance will include about 20 percent of the bonds being made available to offshore investors. Recto noted that the government has already frontloaded some of its offshore borrowings earlier in the year while interest rates were lower. He deferred to Almanza for details on any additional commercial offshore borrowings.

In addition to the RTBs, the government continues to offer regular short-term debt through treasury bills, amounting to around P50 billion per week. The government’s borrowing program for 2025 is set at P2.6 trillion, aimed at funding the budget deficit, which is capped at 5.5 percent of gross domestic product or P1.56 trillion [1].

The upcoming RTB issuance is a strategic move by the government to diversify its funding sources and meet its fiscal obligations. Investors should closely monitor the details of the issuance, including the specific terms and conditions, to make informed investment decisions.

References:
[1] https://www.philstar.com/business/2025/07/22/2459662/government-eyes-p200-billion-retail-bond-float-q3