Philippines to adopt international pricing convention for government bonds

MANILA, Philippines — The Philippines will adopt the international pricing convention for peso-denominated government bonds for settlement purposes starting Jan. 4, 2027, financial regulators and market groups announced Friday.

The Bureau of the Treasury, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Insurance Commission and Philippine Dealing and Exchange Corp. led the initiative with industry associations. They said all relevant regulations and systems will be in place before the end of 2026. Financial institutions are expected to carry out transition activities from Jan. 1 to 3, 2027.

The change will be incorporated into PDEx’s revised fixed-income market rules and trading conventions. The central bank, the SEC and the Insurance Commission will support the industry and the public during the transition.

Investors who hold bonds to maturity, including most individual holders, will see no impact, the groups said. Some investors may see changes in how the settlement value of government bonds is computed. Tax obligations and the contractual terms of the bonds will not change, and investors will continue to receive scheduled coupon payments and principal at maturity.

The groups said the change aligns with international market practice, making Philippine bonds easier to buy and trade and boosting global demand. More participants would deepen liquidity and broaden the investor base, allowing the government to borrow more efficiently and at lower rates, they said. Over time, this could also lower borrowing costs for businesses and households.

“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.

Central bank Gov. Eli Remolona Jr. said a deeper capital market gives businesses more ways to raise funds and “complements bank credit.”

Treasurer Sharon Almanza said the move makes the bond market “more accessible and attractive to international investors.”

SEC Chairman Francis Lim said more familiar pricing could encourage trading and develop a more active secondary market. Insurance Commission officer-in-charge Ermar Benitez said it would give regulated entities greater flexibility in managing their portfolios while ensuring they can meet obligations to policyholders.

The announcement follows J.P. Morgan’s decision to include peso-denominated government bonds in its Government Bond Index–Emerging Markets series on Jan. 29, 2027.

Market participants with concerns were encouraged to contact their dealers, brokers, trust institutions and banks.