Philippines gross borrowings rise in September on external financing jump

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Philippines borrowings rise September

Highlights

Total gross borrowings rose 8.17% year-on-year to P139.45 billion in September, driven by a 161.15% surge in external financing to P21.85 billion.
Domestic borrowings in September fell 2.44% to P117.6 billion, while external financing comprised P12.54 billion in project loans and P9.31 billion in program loans with no global bonds.
Year-to-date gross borrowings totaled P2.394 trillion (87.55% of the P2.73-trillion 2026 program), leaving a P340.4 billion funding gap for the fourth quarter.

September borrowing mix shifts toward external funds

As reported by BusinessWorld, citing the Bureau of the Treasury, total gross borrowings increase by 8.17% to P139.45 billion in September from P128.91 billion in the same month a year earlier.

Domestic borrowings, which account for 84.33% of the September total, decline by 2.44% to P117.6 billion from P120.55 billion a year earlier. These consist of P86.29 billion in fixed-rate Treasury bonds and P31.31 billion in net Treasury bill issuances.

Gross external borrowings, meanwhile, surge by 161.15% to P21.85 billion in September from P8.37 billion last year. External financing during the month consists of P12.54 billion in new project loans and P9.31 billion in program loans, while there are no global bonds in September.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas says in a Viber message that the rise in September borrowings is largely driven by higher external financing as the government diversifies its funding sources and taps opportunities in the global market.

Full-year program remains within reach

In the January-to-September period, national government gross borrowings are largely unchanged, dipping by 0.06% to P2.394 trillion from P2.395 trillion in the same period a year earlier. The end-September figure represents 87.55% of the P2.73-trillion gross borrowing program for 2026.

Domestic borrowings, which account for 74.93% of the nine-month total, decline by 8.52% to P1.79 trillion from P1.96 trillion a year earlier. These consist of P1.37 trillion in fixed-rate Treasury bonds and P424.98 billion in net Treasury bills.

External borrowings in the first nine months jump by 38.07% to P600.04 billion from P434.6 billion a year earlier. These consist of P314.37 billion in global bonds, P166.92 billion in program loans, and P118.75 billion in new project loans.

Mr. Ravelas says gross borrowings remain on track to stay within the full-year program, barring unexpected fiscal needs or market disruptions in the fourth quarter. He says year-to-date borrowings remain at about 88% of the full-year program, leaving a manageable funding requirement for the final quarter.

Based on the full-year 70:30 domestic-to-external financing mix, the government has roughly P340.4 billion in remaining borrowing room for the fourth quarter, consisting of about P120.2 billion in domestic borrowings and P220.1 billion in external borrowings.

Our earlier coverage of Philippine sovereign bond reforms explained plans to adopt a new pricing convention for peso-denominated government bonds and pursue inclusion in a major emerging-market bond index—steps meant to improve liquidity and attract more foreign participation. We noted, however, that cheaper and more stable funding is not automatic and still depends on global rates, exchange-rate expectations, and fiscal credibility, while broader economic gains require deeper domestic capital markets and stronger structural reforms.

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