Phl to adopt global bond pricing rules in January 2027
The Philippines will adopt an international pricing convention for peso-denominated government bonds starting 4 January 2027, a move expected to attract more foreign investors, deepen the local bond market and lower borrowing costs.
The Bureau of the Treasury (BTr), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), Philippine Dealing and Exchange Corp. (PDEx) and industry associations are leading the transition, with all relevant regulations and systems expected to be in place before the end of 2026.
The shift will be incorporated into PDEx’s revised fixed-income market rules and trading conventions, while the BSP, SEC and IC will support regulated institutions and the public during the transition.
Existing bondholders will retain their contractual rights. The change will not affect tax obligations or the terms of existing bonds, and investors will continue to receive scheduled interest payments and principal at maturity. However, some may see adjustments in the computation of settlement values. Investors holding bonds until maturity will not be affected by the change.
The country’s economic managers said the reform forms part of the government’s broader efforts to modernize the financial system and improve the country’s access to global capital.
“This reform is part of our broader effort to modernize the Philippine financial system. Aligning with international standards makes it easier for the Philippines to compete for capital in an increasingly integrated global financial system,” Finance Secretary Frederick Go said.
The new convention is expected to make Philippine government bonds more familiar to international investors, potentially encouraging greater participation and improving liquidity in the secondary market.
Treasurer of the Philippines Sharon Almanza said broader investor participation could help reduce government borrowing costs and expand the government’s capacity to finance infrastructure and public services. SEC Chairman Francis Lim said aligning local bond pricing with international practices could also encourage more secondary-market trading.
BSP Governor Eli Remolona Jr. said a deeper capital market would provide more investment opportunities and give businesses additional sources of financing beyond bank loans.
“A more robust bond market complements bank credit and helps make the Philippine financial market and economy more resilient,” Remolona said.
The transition comes ahead of the inclusion of Philippine peso-denominated government bonds in J.P. Morgan’s Government Bond Index-Emerging Markets series on 29 January 2027. The index inclusion, announced by J.P. Morgan, is expected to coincide with the country’s shift to the international pricing convention.
The government expects a deeper and more liquid bond market to improve price discovery and valuations, strengthen investor confidence and eventually reduce borrowing costs for private companies, enabling them to expand, invest and create jobs.