Offshore borrowing tied to spending needs – DOF

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January 23, 2026 | 12:00am

MANILA, Philippines — The government does not follow a fixed timetable for issuing global bonds, as offshore fund-raising is carefully timed to match the national government’s expenditure requirements, even as the Philippines successfully raised $2.75 billion from its latest dollar bond sale, according to Finance Secretary Frederick Go.

On the sidelines of the 2026 FINEX Inaugural Meeting, Go said the recent triple-tranche global bond issuance was well received by investors and priced better than initially expected.

“Well, it was oversubscribed and at rates tighter than we had initially expected. So, yes we’re happy with the outcome,” he told reporters.

Asked if the government was looking to issue more global bonds this year following the strong demand, Go said there was no immediate plan anchored on market appetite alone.

“We always time our fundraising with the expenditure schedule. So, it’s always timed, and the Bureau of Treasury (BTr) is doing an excellent job at that. Let them continue to do that,” he said.

The Philippines raised $2.75 billion from the sale of dollar-denominated global bonds across three maturities. The BTr issued $500 million of 5.5-year bonds due 2031, $1.5 billion of 10-year bonds due 2036 and $750 million of 25-year bonds due 2051. The proceeds will be used for general budget financing.

Go said he could not provide details on possible future issuances. “I don’t have the exact details for those,” he said, when asked if additional global bond sales were being considered this year.

Beyond the bond sale, Go reiterated the administration’s commitment to fiscal discipline, prudent spending and long-term economic stability.

“More than ever, the government is committed to the same level of governance as best as we can. We are now committed to fiscal discipline and smart spending,” Go told financial executives during his speech, adding that all expenditure programs are being reviewed to ensure funds are directed toward necessary, productive and high-impact projects.

He said the Department of Finance (DOF) has consistently called on government agencies to focus on efficient spending, noting that the country’s long-term economic fundamentals remain solid.

The finance chief said that the Philippine economy grew by an average of 5.7 percent since President Marcos assumed office in 2022, placing the country among the fastest-growing economies in Asia.

He noted that full-year growth last year was estimated at around 4.7 to 4.8 percent, still above the Southeast Asian average of 3.8 percent and the global average of 2.9 percent.

Inflation last year remained subdued at 1.7 percent, which Go partly attributed to policy actions such as the reduction of rice tariffs. He also pointed to the country’s strong credit standing, noting that the Philippines continues to receive investment-grade ratings from major credit agencies.

On tax administration, a DOF official said the government may resume the issuance of letters of authority (LOAs) by the Bureau of Internal Revenue within the first quarter.

The official said this is important for revenue collection, but emphasized that safeguards would be put in place before any resumption, including digitized and risk-based audit selection to minimize discretion and prevent abusive audits.

The issuance of LOAs was suspended last year as part of a review of the BIR’s audit processes, following concerns over arbitrary and abusive assessments and the need to strengthen safeguards for taxpayers.

The suspension was meant to allow the tax agency to recalibrate its audit system and put in place reforms aimed at improving transparency, accountability and the use of data-driven risk assessment before audits are resumed.