The Philippines will adopt the international bond pricing convention for the settlement of peso-denominated bonds effective 4 January 2027, following the announcement by Philippine financial regulators, market participants, and industry associations.

The initiative is led by the Bureau of the Treasury (BTr), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), Philippine Dealing and Exchange Corp. (PDEx), and industry associations, including the National Association of Securities Brokers, Inc. (NASBI).

The transition aims to align Philippine bond market practices with international standards, making Philippine bonds more familiar and accessible to global investors. Greater market participation is expected to support deeper market liquidity, more efficient price discovery, and a more active secondary market for local bonds.

What Investors Need to Know

Under the new convention, some investors may see changes in the computation of the settlement value of peso-denominated bonds. However, the transition will not change the contractual terms of the bonds, their scheduled interest payments, or the repayment of principal at maturity. Tax obligations will also remain unchanged.

For investors who hold their bonds to maturity, there will be no actual impact from the change in pricing convention.

Financial institutions and relevant market participants are expected to undertake the necessary transition activities from 1 to 3 January 2027, ahead of the implementation date.

Supporting a More Accessible and Liquid Bond Market

The adoption of the international pricing convention is consistent with efforts to modernize the Philippine financial market and strengthen its integration with global markets. By encouraging broader investor participation and improving market liquidity, the reform is expected to support more efficient government borrowing and contribute to the further development of the domestic capital market.

The initiative also follows J.P. Morgan’s announcement that Philippine peso-denominated government bonds will be included in its Government Bond Index – Emerging Markets series on 29 January 2027.

Reference Materials

For further information, please refer to the following materials:

• BSP press release: Philippines to Adopt International Bond Pricing Convention

• Frequently Asked Questions (FAQs) for Clients Dealing Through Brokerage