Philippine Airlines (PAL) has secured $300 million through its first-ever international bond offering, with proceeds earmarked for fleet modernization and long-term expansion.
The fixed-rate bonds will be issued via PAL’s fully owned subsidiary Primero Agila Limited, carrying a 7.75 percent annual coupon and set to list on the Singapore Exchange. The deal is scheduled to be finalized around July 16, following standard closing requirements, and is fully guaranteed by both Philippine Airlines Inc. and Air Philippines Corp.
Global investor interest far outpaced the amount on offer: total orders reached over $1.4 billion, making the issuance roughly 4.5 times oversubscribed. PAL noted this strong demand signals growing trust in its financial and operational turnaround after restructuring, as well as its future growth plans.
The transaction sets multiple records: it is the first rated high-yield bond from a Philippine issuer in over 10 years, the first unsecured rated high-yield bond from any Asian airline, and the first rated airline bond offering across South and Southeast Asia.
Lucio C. Tan III, president of PAL Holdings, Inc., said the deal reflects the airline’s major progress in recent years, calling it global recognition of PAL’s transformation and vision. He added the funds will help expand routes, improve passenger experience, and support Philippine tourism, trade and economic development. PAL president Richard Nuttall described the offering as a key milestone in the airline’s ongoing evolution, thanking investors for their confidence in its strategy and market position.
Deutsche Bank served as Sole Global Coordinator and Rating Advisor, while BNP Paribas acted as Joint Bookrunner for the transaction.
