The Philippine government has raised P167.25 billion from its Retail Treasury Bond 32 (RTB 32) offering, the Bureau of the Treasury (BTr) announced on Friday.

Of the total, P84.86 billion was raised at the rate-setting auction on Sept. 29, while an additional P82.39 billion came in during the offer period that ended Oct. 7, the Treasury said in a statement. The result followed the BTr's decision to limit the public offering of RTB 32 to retail investors beginning Oct. 1. The amount raised from the bond's exchange program will be announced at a later date.

“Proceeds from the RTB-32 issuance will support the government's budgetary requirements for various projects and programs such as education, health, infrastructure, agriculture, among others,” the BTr said.

To help drive demand for the offering, the Treasury, together with its joint issue managers, conducted regional roadshows in Baguio, Batangas, Cagayan De Oro, Cebu, Davao, Iloilo, Naga, and Pampanga. The BTr also set up information booths in several areas across the National Capital Region (NCR) and held financial literacy sessions for overseas Filipino communities, local retail investors, and institutions to raise public awareness of the RTB program.

The total amount announced exceeded the P150-billion target for new money under the offer that National Treasurer Sharon P. Almanza had previously cited.

The two-and-a-half-year bonds carry a coupon rate of 6.875% and will be issued and settled on Oct. 12. The offering also included an exchange option for holders of RTBs maturing on Oct. 20, 2026 (RTB 15-01), March 1, 2027 (RTB 15-), and March 4, 2027 (RTB 05-15), as well as for holders of fixed-rate Treasury notes (FXTN) maturing on Dec. 7, 2026 (FXTN 20-13) and Jan. 4, 2027 (FXTN 03-30). Under the exchange program, holders of these eligible securities could swap their existing holdings into the new RTB 32 issue.

The bonds were sold in minimum denominations of P5,000, and in multiples P5,000 thereafter, through the web-based BTr Online Ordering Facility via China Banking Corp., Land Bank of the Philippines (LANDBANK), and First Metro Securities. They were also available through application-based channels including the LANDBANK mobile banking app, the Overseas Filipino Bank mobile banking app, GCash via GBonds, PDAX, the ATRAM Prime and ATRAM PERA mobile apps, and RCBC Pulz. The low minimum denomination and breadth of digital channels reflected the retail-oriented design of the offering.

The Development Bank of the Philippines and LANDBANK served as Joint Lead Issue Managers, while BDO Capital & Investment Corporation, BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corporation, PNB Capital and Investment Corp., Unionbank of the Philippines, and Security Bank Capital Investment Corp. acted as Joint Issue Managers for RTB-32.

International Bond Standards

Separately, Philippine financial regulators announced on Friday that the pricing of peso-denominated government bonds for settlement purposes will adopt the international pricing convention effective Jan. 4, 2027, confirming that all relevant regulations and systems will be in place before the end of 2026.

“This reform is part of our broader effort to modernize the Philippine financial system. Aligning with international standards makes it easier for the Philippines to compete for capital in an increasingly integrated global financial system,” Finance Secretary Frederick D. Go said in a separate press release.

Ms. Almanza previously said the government has been working to align bond pricing conventions with international standards as part of efforts to secure the inclusion of Philippine bonds in JPMorgan Chase & Co.'s Government Bond Index-Emerging Markets (GBI-EM), with an announcement set for Jan. 29, 2027.

Other participating regulators include the Bangko Sentral ng Pilipinas (BSP), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC), along with the Philippine Dealing and Exchange Corp. (PDEx). Industry associations taking part include the Bankers Association of the Philippines (BAP), the Trust Officers Association of the Philippines (TOAP), the Fund Managers Association of the Philippines (FMAP), the Money Market Association of the Philippines (MART), the National Association of Securities Brokers Inc. (NASBI), the Philippine Investment Funds Association (PIFA), and the Philippine Life Insurance Association (PLIA).

The shift in pricing convention will be applied to PDEx's revised fixed-income market rules and trading conventions, while the regulators overseeing financial institutions — the BSP, the SEC, and the IC — will support the industry and the public through the transition process.

“A deeper and more liquid capital market provides more investment opportunities while giving businesses additional ways to raise funds. A more robust bond market complements bank credit and helps make the Philippine financial market and economy more resilient,” BSP Governor Eli M. Remolona, Jr. said.

According to the BTr, investors who hold bonds to maturity — the category that covers most Philippine bondholders — will see no actual impact, though some investors may notice changes in the computation of the settlement value of government bonds. Tax obligations will remain unchanged, as the transition will not alter the contractual terms of the bonds. Investors will continue to receive scheduled interest payments (coupons) and principal at maturity in accordance with the terms of their bonds, the Treasury said.

The reform is designed to allow the government to borrow more efficiently and at lower rates by increasing participation in the government bond market and deepening market liquidity and the investor base. This would create more fiscal space, helping fund more and better public infrastructure and services, while supporting more efficient price discovery and bond valuations.

The private sector is also expected to benefit, as lower borrowing costs would help businesses expand, invest, and create jobs, while allowing households to finance major investments and purchases.

“This is an important step in making the Philippine bond market more accessible and attractive to international investors. Broader participation in the government bond market will help lower borrowing costs, enabling the government to finance more productive spending, including public infrastructure and services,” Ms. Almanza added.