Philippines to boost global bond sales as graft hits economy

THE PHILIPPINES plans to raise the amount of funds it gets from selling international bonds by more than 60% to $5.3 billion next year, as the government seeks to finance an economy stunted by a graft scandal.

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The Southeast Asian nation’s overall borrowings for 2026 will only be slightly higher than this year’s, but the government aims to increase the portion that comes from abroad to 25% from 19% now as part of its debt management strategy, National Treasurer Sharon P. Almanza said.

The government will soon pick banks to manage the first round of capital raising, which may start from the January-March quarter,

Ms. Almanza said in an interview on Tuesday. The borrowing may include the issuance of debt intended for climate and social objectives, she said.

The plan comes as allegations of government corruption in flood infrastructure projects sparked mass protests, building pressure on President Ferdinand R. Marcos, Jr. to implement sweeping reforms. The scandal has slowed economic growth and soured investor sentiment.

Yieldson Philippine bonds edged lower on Wednesday. The yield on the US dollar bond due 2050 was down 1 basis point (bp) to 5.473% while the yield on the note due 2035 slipped 2 bps to 4.721%, according to data from the Composite Bloomberg Bond Trader.