Philippine Airlines has raised $300 million through its first international bond offering, attracting strong interest from global investors and marking a significant step in the airline’s financial turnaround.
The bond, announced on July 8, 2026, will pay investors 7.75% interest annually over five years. It will be listed on the Singapore Exchange and is expected to settle on July 16, 2026.
A first for Philippine companies and Asian airlines
Investors offered to buy $1.4 billion worth of bonds, roughly 4.5 times more than what was available. The oversubscription suggests confidence in the airline’s financial health following its restructuring in recent years.
The offering sets several firsts: it is the first rated high-yield bond by a Philippine company in more than a decade, the first unsecured rated high-yield bond issued by an Asian airline, and the first rated airline bond from South and Southeast Asia.
How PAL sees the milestone
Lucio C. Tan III, President of PAL Holdings, said the bond offering reflects how far the airline has come.
“This landmark bond offering is a powerful affirmation of Philippine Airlines’ transformation and the confidence that global investors have in our long-term vision and growth ambitions,” Tan said. “This allows us to strengthen our network and continue to elevate the travel experience for our customers.”
Richard Nuttall, President of Philippine Airlines, described the offering as a defining milestone.
“We are grateful for the overwhelming support we received from investors globally, which we see as a vote of confidence in PAL’s long-term strategy, market position and growth outlook,” Nuttall said.
85 years and a new chapter
The bond offering comes after a series of milestones for the airline over the past two years, including sustained profitability, fleet modernization, international network expansion, and credit ratings from both Moody’s and Fitch.
The airline is celebrating its 85th year of service in 2026.
Deutsche Bank acted as the sole global coordinator and rating advisor, with BNP Paribas serving as joint bookrunner.