News
Philippine Airlines’ guaranteed bond offering attracts strong interest from investors with heavy oversubscription
July 9th 2026
Philippine Airlines (PAL) announced the pricing of its inaugural fixed-rate US$300 million 5-year senior unsecured guaranteed bond offering, to be issued through its wholly owned subsidiary, Primero Agila Limited, at a coupon of 7.75%. Read More » The bond will be unconditionally and irrevocably guaranteed by Philippine Airlines, Inc. and Air Philippines Corporation and will be listed on the Singapore Exchange Securities Trading Limited. The bond offering is expected to settle on or about July 16, 2026, subject to satisfaction of customary closing conditions. The landmark transaction marks a new chapter in PAL’s transformation and long-term growth journey.
The offering attracted strong interest from a diversified global investor base, generating a final orderbook of more than US$1.4 billion, representing an oversubscription of approximately 4.5 times, PAL revealed. “The strong response demonstrates global investor confidence in Philippine Airlines’ operational and financial turnaround following its restructuring and reinforces the airline’s continued momentum as it enters its next phase of growth,” the airline commented. “The transaction also represents several significant achievements for both Philippine Airlines and the Philippine capital markets. It is the first rated high-yield bond offering by a Philippine issuer in more than a decade, the first unsecured rated high-yield bond issued by an Asian airline, and the first-ever rated airline bond issuance from South and Southeast Asia. Collectively, these achievements reflect PAL’s strengthened financial standing, growing confidence among global investors, and successful transformation into an airline with direct access to the international capital markets,” it added.
“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. This allows us to strengthen our network and continue to elevate the travel experience for our customers. It reinforces Philippine Airlines’ role in promoting tourism, trade, investment and economic growth for the Philippines,” Lucio C. Tan III, President of PAL Holdings, said.
“This inaugural international bond offering marks a defining milestone in Philippine Airlines’ ongoing transformation. 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,” said Richard Nuttall, President of Philippine Airlines.
In its comment, InsiderPH wrote: “The global bond market has delivered one of the clearest endorsements yet of taipan Lucio Tan’s Philippine Airlines’ (PAL) turnaround. Five years after its Chapter 11 restructuring, the flag carrier raised $300 million (P18.5 billion) after attracting more than $1.4 billion in investor orders.” The magazine pointed out that the heavy oversubscription gives PAL greater credibility in global debt markets and leaves it better positioned to raise funds internationally should it need to tap investors again.
