Philippine Airlines (PAL) has raised $300 million through its first international bond offering, a landmark step in the flag carrier's financial turnaround since emerging from bankruptcy. The deal, announced on July 8, 2026, drew strong demand from global investors.
The five-year bond will pay investors a 7.75% annual coupon and is set to be listed on the Singapore Exchange, with settlement expected on July 16. Investor appetite far outstripped supply: orders reached around $1.4 billion, roughly 4.5 times the amount on offer β a level of oversubscription that points to renewed confidence in the airline's finances.
The offering marks several firsts. According to reporting on the deal, it is the first rated high-yield bond issued by a Philippine company in more than a decade, the first unsecured rated high-yield bond from an Asian airline, and the first rated airline bond to come out of South and Southeast Asia.
Proceeds are earmarked to help fund PAL's international expansion, as the carrier looks to add flights to key North American hubs including Chicago, New York, Toronto and Vancouver. The bond is the airline's first since it exited Chapter 11 bankruptcy proceedings in the United States in December 2021.
Deutsche Bank acted as sole global coordinator and rating advisor on the transaction, with BNP Paribas serving as a joint bookrunner. Philippine Airlines is controlled by Lucio Tan, one of the Philippines' wealthiest businessmen.
The successful sale underscores how far the carrier has traveled since its restructuring, giving it access to international debt markets to finance a widebody-driven push across the Pacific. For an airline that only recently completed a court-supervised financial overhaul, tapping global bond investors at scale is a notable vote of confidence.
Sources: AeroTime, Forbes. Featured image: AI-generated by AviationShop. By Daniel Okafor.
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