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Philippine Airlines, Inc. is getting fresh funds after pricing its first fixed-rate US$300 million five-year senior unsecured guaranteed bond offering, which will be listed on the Singapore Exchange Securities Trading Limited
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The bond will be issued through PAL’s wholly owned subsidiary Primero Agila Limited and will be unconditionally and irrevocably guaranteed by PAL and Air Philippines Corporation
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The offering attracted strong investor interest, generating a final orderbook of more than $1.4 billion, an oversubscription of about 4.5 times
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PAL officials said the successful inaugural foray into the international capital market highlights the airline’s financial turnaround and paves the way for expansion
Philippine Airlines, Inc. (PAL) is getting fresh funds after pricing its first fixed-rate US$300 million five-year senior unsecured guaranteed bond offering, which will be listed on the Singapore Exchange Securities Trading Limited.
The Philippine-listed company announced in a regulatory disclosure on July 8 that the bond will be issued through its wholly owned subsidiary, Primero Agila Limited. It will be “unconditionally and irrevocably guaranteed by Philippine Airlines, Inc. and Air Philippines Corporation”.
The bond offering is expected to settle around July 16, 2026, subject to satisfaction of customary closing conditions.
PAL called its inaugural foray in the international capital market a “landmark transaction” as the offering attracted strong investor interest, generating a final orderbook of more than $1.4 billion, which reflects an oversubscription of approximately 4.5 times.
“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,” Lucio C. Tan III, president of PAL Holdings, Inc., said in a statement.
PAL filed a voluntary Chapter 11 bankruptcy process in the United States in September 2021. It completed its restructuring plan and was back in positive financial territory by the first half of 2023.
Richard Nuttall, president of PAL, said the “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.”
Deutsche Bank acted as the Sole Global Coordinator and Rating Advisor, together with BNP Paribas as Joint Bookrunners for the transaction.
READ: PAL secures Fitch ‘BB’ rating with market position, financial flexibility
Fitch Ratings assigned a ‘BB’ rating to the proposed notes in June 26.
PAL also cited that the transaction is 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,”
PAL, which is celebrating its 85th anniversary this year, said its successful financial foray highlights its position as an emerging globally competitive airline.
“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,” Tan said.
READ: PAL Q1 2026 net income grew 2.6%
