The five-year senior unsecured bonds carry a 7.75 percent fixed coupon, according to an insider.
Philippine Airlines launched the bond offering after holding investor meetings led by president Richard Nuttall and chief operating officer Carlos Luis L. Fernandez.
The deal was led by Deutsche Bank and BNP Paribas, a previous filing showed.
The proceeds will support fleet modernization and other long-term requirements as the 85-year-old airline continues to build on its postpandemic recovery.
Philippine Airlines, Asia’s first commercial airline, has steadily rebuilt its finances and expanded its access to global funding since completing its Chapter 11 reorganization in 2021.
The move comes as the flag carrier weighs major widebody fleet expansion move. Bloomberg News reported PAL is considering an order for about 10 Boeing 787s and 10 Airbus A350s.
This would be the airline's first direct aircraft order with Boeing Co. since 2007,
The fundraising broadens Philippine Airlines’ funding sources beyond traditional bank financing while strengthening its profile among international fixed-income investors.
—Edited by Miguel R. Camus
