Philippine Airlines, controlled by Philippines’ 3rd richest man Lucio Tan, raises $300M through bonds

By Samira Vishwas On Jul 9, 2026

The five-year senior unsecured guaranteed bonds were priced at 7.75% and issued by Primero Agila, a wholly owned subsidiary of the airline, according to a statement from the carrier. The offering was 4.5 times oversubscribed, with the orderbook exceeding $1.4 billion, it said.

The bond sale marks Philippine Airlines’ first since the airline emerged from Chapter 11 bankruptcy proceedings in the U.S. in December 2021. Proceeds will support the carrier’s international expansion plans, including efforts to increase flights to key North American hubs such as Chicago, New York, Toronto and Vancouver.

An aircraft of Philippine Airlines. Photo via Wikipedia/Steve Lynes

“This landmark bond offering is a powerful affirmation of Philippine Airlines’ transformation and the confidence that global investors have in our long-term vision and growth ambitions,” said Lucio C. Tan III, president of PAL Holdings and the tycoon’s grandson.

“This allows us to strengthen our network and continue to elevate the travel experience for our customers.”

The bonds, which are unconditionally and irrevocably guaranteed by Philippine Airlines and its wholly owned unit Air Philippines Corp., will be listed on the Singapore Exchange, the airline said.

Lucio Tan, chairman of Philippine Airlines, attends a press conference in Manila on August 28, 2012. Photo by AFP

It added that the $300 million bond sale is the first rated high-yield bond offering by a Philippine issuer in more than a decade and the first unsecured rated high-yield bond issued by an Asian airline.

The airline has recorded a strong earnings recovery since the depths of the Covid-19 pandemic. Net profit rose 2.6% to $78.6 million in the first quarter from a year earlier, while revenue increased 9.7% to $895.7 million.

Beyond aviation, Tan has interests in banking, beer, spirits, tobacco and real estate through his publicly listed flagship company LT Group. With a net worth of $3 billion, according to Forbes real-time data, Tan is among the Philippines’ wealthiest tycoons.