PAL Holdings, Inc. has announced that Philippine Airlines (PAL), the country’s flag carrier, is planning to raise funds by selling special bonds called “senior notes” to big investors around the world. This announcement was made in a filing to the Securities and Exchange Commission on June 26, 2026.
What Are They Doing?
Think of it like this: when you want to buy something expensive but don’t have enough money saved up, you might borrow from someone and promise to pay them back later with a little extra (interest). That’s basically what Philippine Airlines is doing, but on a much bigger scale.
PAL is planning to sell bonds (which are like IOUs) worth millions of US dollars to investors. These are called “5NC2 senior fixed rate notes,” which sounds complicated, but here’s what it means:
- 5NC2: The bonds last for 5 years, but PAL can’t pay them back early until after 2 years (that’s what “NC2” means – “non-callable for 2 years”)
- Senior: If something goes wrong, these bondholders get paid back before other lenders
- Fixed rate: The interest rate stays the same for the whole period
Who’s Helping Them?
PAL has hired big international banks to help them sell these bonds. Deutsche Bank will be the main coordinator, working together with BNP Paribas. These banks will help PAL meet with potential investors in Asia, Europe, the Middle East, and the United States starting June 29, 2026.
How Good Are These Bonds?
Two important rating agencies have given these bonds a rating:
- Moody’s: Ba2 with Stable outlook
- Fitch: BB with Stable outlook
These ratings are like report cards for bonds. The ratings mean the bonds are considered “below investment grade” but still reasonably safe. It’s like getting a B- grade – not perfect, but decent.
Who’s Actually Issuing the Bonds?
The bonds will technically be issued by a company called Primero Agila Limited, which is registered in the Cayman Islands and is completely owned by Philippine Airlines. However, both Philippine Airlines, Inc. and Air Philippines Corporation will guarantee these bonds, meaning they promise to pay the money back if Primero Agila can’t.
Can Regular Filipino Investors Buy These?
No, not directly. According to the filing, these notes are not registered with the Philippine SEC and are only being offered to special types of investors called “qualified institutional buyers” in the United States and to investors outside the Philippines. This is an exempt transaction, meaning it doesn’t follow the normal rules for selling securities to the general public in the Philippines.
About PAL Holdings
PAL Holdings, Inc. (stock symbol: PAL) is the parent company of Philippine Airlines. According to the filing, the company has 26,852,106,890 common shares outstanding. The company is headquartered at the Lucio K. Tan, Jr. Center at PAL Gate 5 in Pasay City.
This fundraising activity suggests that Philippine Airlines is looking to strengthen its financial position and possibly fund expansion or improvements to its operations.
Source: This article is based on PAL Holdings, Inc.’s SEC Form 17-C filed on June 26, 2026.
This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
