A Philippine Airlines A320.Philippine AirlinesPhilippine Airlines (PAL)—controlled by tobacco and banking tycoon Lucio Tan—has raised $300 million through the sale of five-year bonds, providing funds to help fund the flag carrier’s fleet modernization and expansion.The five-year senior unsecured guaranteed bond was priced at 7.75% and issued by wholly owned subsidiary Primero Agila, the Philippine flag carrier said in a statement. The bonds were 4.5 times oversubscribed with an orderbook of more than $1.4 billion, it said.It’s the first bond sale for PAL since emerging from Chapter 11 bankruptcy proceedings in the U.S. in December 2021. Proceeds from the bond sale will help fund the airline’s international expansion as it seeks to increase flights into key North American hubs such as Chicago, New York, Toronto and Vancouver.“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, unconditionally and irrevocably guaranteed by PAL and wholly-owned unit Air Philippines Corp., will be listed on the Singapore Exchange, the carrier said. Deutsche Bank and BNP Paribas arranged the sale which is expected to settle on or about July 16, 2026.PAL said its $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.MORE FOR YOUThe airline has seen a robust earnings recovery since the depths of the Covid-19 pandemic. Net profit rose 2.6% to $78.6 million in the first quarter from the previous year as revenue climbed 9.7% to $895.7 million.Aside from PAL, Tan’s also 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 country’s wealthiest tycoons.