The Philippines will adopt international pricing conventions for peso-denominated government and corporate bonds from January 4, 2027, as financial regulators and market participants work to make the local bond market more accessible to international investors.
The initiative is being led by the Bureau of the Treasury (BTr), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and Philippine Dealing and Exchange Corp. (PDEx), alongside industry associations representing banks, fund managers, brokers, trust institutions, and insurers.
The participating agencies said the regulatory changes and supporting systems would be ready before the end of 2026. Consultations with investors and other stakeholders have intensified this year to prepare the market for the transition.
The revised pricing convention is intended to bring Philippine bonds in line with established international market practices, potentially making the securities easier for overseas investors to assess and trade.
The move comes ahead of the inclusion of Philippine peso-denominated government bonds in JPMorgan’s Government Bond Index-Emerging Markets series on January 29, 2027.
For investors who keep their bonds until maturity, the change will have no actual impact, according to the agencies. However, some market participants may notice differences in how settlement values are calculated.
The transition will not change existing bond contracts, tax obligations or scheduled payments. Investors will continue to receive interest and principal according to the original terms of their holdings.
Finance Secretary Frederick Go said the reform was part of efforts to bring the Philippine financial system closer to international standards and strengthen its ability to attract capital.
Aligning with international standards makes it easier for the Philippines to compete for capital in an increasingly integrated global financial system.
Bangko Sentral Governor Eli Remolona Jr. said a more developed bond market would provide investors with additional opportunities while giving businesses more options for raising funds beyond bank financing.
Treasurer of the Philippines Sharon Almanza said greater participation in government securities could help reduce borrowing costs and support public spending on infrastructure and services.
SEC Chairman Francis Lim said the shift could encourage more secondary-market trading by making local bond pricing more familiar to international investors.
Increased activity could eventually benefit Philippine companies seeking funding and investors looking for a wider range of assets.
Insurance Commission officer-in-charge Ermar Benitez said improved liquidity could give regulated institutions more flexibility in managing their investment portfolios while allowing them to continue meeting obligations to policyholders and beneficiaries.
The new convention will be incorporated into PDEx’s updated fixed-income market rules and trading practices. The BSP, SEC and IC will help financial institutions and the public navigate the changes.