The Bureau of the Treasury (BTr) said it raised P300 billion from the offering of 10-year benchmark fixed-rate Treasury notes (FXTNs) amid strong investor appetite.
The offering was made available to investors across various account types, including corporates, cooperatives, trust funds, retirement funds, provident funds and other institutional investors.
It said the settlement and listing on the Philippine Dealing & Exchange Corp. Fixed Income Board is scheduled on April 28, 2025.
The benchmark FXTNs, with a tenor of 10 years and a fixed coupon rate of 6.375 percent per annum, attracted robust demand from the market during the auction date and the public offer period.
The BTr kicked off the issuance on April 15, 2025, with significant market support, garnering P197.3 billion in bids for an oversubscription of 6.6 times the minimum issue size of 30 billion, which allowed for an upsized award of P135 billion at the rate-setting auction.
The initial momentum persisted into the offer period, which raised an additional P165 billion within the first five days, with total bids amounting to P307.05 billion.
Having reached a substantial benchmark size of P300 billion, the BTr said it shortened the offer period to close on April 23, 2025.
“This inaugural public offering of the 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 Republic’s programs and goals. We thank all our investors for their trust and support for this historic milestone in the development of the Philippine fixed-income market,” said National Treasurer Sharon Almanza.
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.
It said the benchmark issuance also reinforces the BTr’s commitment to building a resilient and efficient domestic capital market while helping fund the government’s priority projects in the agriculture, infrastructure, education, and healthcare sectors.
It said that 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.
The Development Bank of the Philippines and Land Bank of the Philippines served as the joint lead issue managers, while BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. were the joint issue managers of the FXTN public offering.
