Philippines bond market grows 2.8% in three months
MANILA, Philippines — The country’s bond market returned to growth in the first quarter, driven by an increase in both government and corporate issuances, despite heightened global uncertainty, according to the Asian Development Bank (ADB).
In its Asia Bond Monitor June 2026 report released yesterday, the ADB said the Philippines’ local currency bond market posted a 2.8-percent quarter-on-quarter (q-o-q) growth to P14.1 trillion in the first quarter.
This marks a turnaround from the 0.7 percent q-o-q contraction in the previous quarter.
ADB said the first quarter growth was “supported by gains in government bonds (3.9 percent q-o-q) and corporate debt stock (4.3 percent q-o-q) on increased issuance.”
Total bond issuance in the first quarter jumped by 32.5 percent q-o-q. This was driven by the government’s bond issuance, which more than doubled from the previous quarter due to the government’s frontloading policy.
The increase was also partly due to the government’s issuance of 10-year benchmark bonds amounting to P297.9 billion in February.
Corporate debt sales in the first quarter also grew by 67.1 percent q-o-q, supported mainly by the banking industry, which raised funds for its refinancing needs.
Banks accounted for the bulk or 86.8 percent of the total corporate issuance in the first quarter.
By investor group, banks and other financial institutions remained the largest holders of local currency government bonds, accounting for a combined share of 59.4 percent at the end of March, up from 57.3 percent in February.
Meanwhile, foreign holdings of government bonds declined to four percent from five percent over the same period, reflecting investors’ risk aversion amid geopolitical uncertainties.
ADB’s report also showed that the country’s sustainable bond market grew by 11.7 percent q-o-q to $17.9 billion in the first quarter.
The growth was supported by the more than fivefold increase in sustainable bond issuance to $3.4 billion in the first quarter from the previous quarter, driven mainly by the private sector.
