The Bureau of the Treasury’s (BTr) inaugural 10-year benchmark fixed-rate Treasury notes (FXTNs) has successfully raised ₱300 billion from a diverse base of institutional investors. The issuance marks a significant milestone in the development of the country’s domestic capital market and bolsters the government’s economic and infrastructure agenda.
According to the BTr, the FXTNs—featuring a fixed coupon rate of 6.375 percent per annum and a maturity of ten years—drew overwhelming demand throughout the issuance process. Launched on April 15, 2025, the offering immediately garnered strong interest with ₱197.3 billion in bids during the rate-setting auction, representing a 6.6 times oversubscription relative to the initial ₱30-billion issue size. This prompted the BTr to upsize the award to ₱135 billion.
Investor enthusiasm persisted into the public offer period, which generated an additional ₱165 billion in subscriptions within just five days, bringing total bids to ₱307.05 billion. Given the early attainment of the ₱300-billion target, the BTr shortened the offer period, closing it on 23 April 2025, ahead of schedule. The FXTNs will be settled and listed on the Philippine Dealing and Exchange Corp. fixed income board on 28 April 2025.
“This inaugural offering of the 10-year benchmark FXTN is not only about raising funds—it is about giving the market more ways to invest in their future and take part in the Republic’s programs and goals,” said National Treasurer Sharon P. Almanza, emphasizing the issuance’s broader significance to financial market development.
The offering was made available to a wide range of account types, including corporates, cooperatives, trust and retirement funds, provident institutions, and other institutional investors, reflecting widespread market support across sectors.
Despite ongoing global macroeconomic uncertainty, the success of the FXTN issuance underscores investor confidence in Philippine government securities as reliable investment vehicles. It also affirms the BTr’s strategic direction toward establishing deep, liquid benchmarks that facilitate efficient capital mobilization and enhance price discovery and trading in the secondary market.
The benchmark FXTN is expected to play a critical role in supporting the government’s priority programs in agriculture, infrastructure, education, and health care by mobilizing domestic resources efficiently.
The Development Bank of the Philippines and the Land Bank of the Philippines served as joint lead issue managers, with BDO Capital, BPI Capital, Chinabank Capital, First Metro Investment, PNB Capital, and Security Bank Capital acting as joint issue managers.
