Philippines Could Score $3 Billion Windfall If JPMorgan Adds Its Bonds to Benchmark Emerging Market Index
Here's a number that should make every Filipino investor sit up: the Philippines could attract roughly $3 billion in foreign capital inflows if its government bonds are added to JPMorgan Chase's benchmark emerging-market bond index this year. That's according to National Treasurer Sharon Almanza, who shared the estimate during an ASEAN treasury innovation forum.
JPMorgan's Government Bond Index-Emerging Markets (GBI-EM) is one of the most closely watched benchmarks in global finance. When a country gets added, billions of dollars from passive index-tracking funds automatically flow into its bond market — essentially free money that lowers borrowing costs, strengthens the currency, and signals global investor confidence. Countries like Colombia and Romania have seen dramatic bond market boosts after inclusion.
Almanza has been pushing hard for inclusion, working to meet JPMorgan's technical requirements around market size, liquidity, and settlement infrastructure. The Philippines has been on the "watch list" for potential inclusion, and 2026 could be the year it finally happens — especially with the country chairing ASEAN and actively courting international investors.
The timing couldn't be better for Manila. With the government targeting a narrower fiscal deficit of 4.3% of GDP by 2028 and needing to fund massive infrastructure and education spending, cheaper borrowing through index inclusion would give the Treasury significant breathing room. A $3 billion inflow would also help stabilize the peso, which has been under pressure from persistent current account deficits.
For ordinary Filipinos, the impact would be indirect but real: lower government borrowing costs mean more money available for services and infrastructure, and a stronger peso means cheaper imports. It's one of those financial stories that sounds technical but could genuinely make a difference. Sana matuloy — $3 billion is not pocket change.
Source: Bloomberg
