Obligation Filipinas 3.7% ( US718286CB15 ) en USD

Filipinas

100 % ▲

Philippines

US718286CB15 ( en USD )

3.7% par an ( paiement semestriel )

01/02/2042

Prospectus brochure de l'obligation Philippines US718286CB15 en USD 3.7%, échéance 01/02/2042

200 000 USD

2 000 000 000 USD

718286CB1

02/08/2026 ( Dans 155 jours )

Les Philippines sont un archipel de plus de 7 000 îles situées en Asie du Sud-Est, connues pour leur biodiversité, leur culture riche et leur histoire coloniale complexe.

L'obligation philippine (ISIN : US718286CB15, CUSIP : 718286CB1) d'une valeur nominale de 2 000 000 000 USD, émise aux Philippines et libellée en USD, affiche actuellement un prix de marché de 100%, offre un taux d'intérêt de 3,7% avec des paiements semestriels, et arrive à échéance le 01/02/2042, avec un placement minimum de 200 000 USD.

PROSPECTUS SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 11, 2016
US$2,000,000,000
Republic of the Philippines
3.70% Global Bonds due 2042
The Republic of the Philippines (the "Republic") will pay interest on the global bonds on February 2 and August
2 in each year. The first interest payment on the global bonds will be made on August 2, 2017 in respect of the
period from (and including) February 2, 2017 to (but excluding) August 2, 2017. The Republic may not redeem
the global bonds prior to their maturity. The global bonds will mature at par on February 2, 2042.
The global bonds will be designated Collective Action Securities, and, as such, will contain provisions regarding
certain aspects of default, acceleration, voting on amendments, modifications, changes, waivers and future issues
of global bonds that differ from those applicable to most of the Republic's outstanding External Public
Indebtedness (as defined in the accompanying prospectus dated February 11, 2016). Under these provisions,
which are described in the section entitled "Collective Action Securities" on page 140 of the accompanying
prospectus, the Republic may, among other things, amend the payment provisions of the global bonds and certain
other material terms with the consent of the holders of not less than 75% of the aggregate principal amount of the
outstanding global bonds.
The offering of the global bonds is conditional on the receipt of certain approvals of the Monetary Board of the
Bangko Sentral ng Pilipinas, the central bank of the Republic.
The global bonds are being offered globally for sale in the jurisdictions where it is lawful to make such offers and
sales. Application has been made to admit the global bonds to listing on the Official List of the Luxembourg
Stock Exchange and to trading on the Euro MTF Market ("Euro MTF"). We cannot guarantee that the
application to the Luxembourg Stock Exchange will be approved, and settlement of the global bonds is not
conditional on obtaining the listing.
We expect to deliver the global bonds to investors in registered book-entry form only through the facilities of
The Depository Trust Company ("DTC"), Clearstream Banking, S.A. ("Clearstream, Luxembourg"), and
Euroclear Bank, S.A./N.V. ("Euroclear" or the "Euroclear System" ), on or about February 2, 2017.
Per Bond
Total
Price to investors . . . . . . . . . . . . . . . . . . . . . . . . .
100%
US$2,000,000,000
Underwriting discounts and commissions . . . . . .
0.05%
US$
1,000,000
Proceeds, before expenses, to the Republic . . . . .
99.95%
US$1,999,000,000
Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved of these securities or determined if this prospectus supplement or the accompanying
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners
Citigroup
Credit Suisse
Deutsche Bank
Standard
UBS
Securities
Chartered Bank
The date of this prospectus supplement is January 18, 2017

[THIS PAGE INTENTIONALLY LEFT BLANK]
S-2

TABLE OF CONTENTS
Prospectus Supplement
Pages
Introductory Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-4
Summary of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-5
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-8
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-9
Description of the Global Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-35
Global Clearance and Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-38
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-41
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-44
Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-45
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-52
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-52
Prospectus
Pages
Certain Defined Terms and Conventions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
Forward-Looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
Data Dissemination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Use of Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iv
Prospectus Summary Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Government and Politics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
History, Land and People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
International Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Natural Disasters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
Philippine Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
GDP and Major Financial Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Principal Sectors of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Prices, Employment and Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Balance of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Monetary System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95
The Philippine Financial System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
101
The Philippine Securities Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109
Public Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
The Government Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
115
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
117
Description of the Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
Description of the Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
Description of the Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
137
Limitations on Issuance of Bearer Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
138
Ranking Provisions of the Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139
Collective Action Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
140
Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
144
Plan of Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
154
Validity of the Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Authorized Representative in the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Experts; Official Statements and Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Further Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Debt Tables of the Republic of the Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
T-1
S-3

You should read this prospectus supplement along with the prospectus that accompanies it. You
should rely only on the information contained or incorporated by reference in this document and the
accompanying prospectus or to which we have referred you. We have not authorized anyone to provide
you with information that is different. This document may only be used where it is legal to sell these
securities. This document and the accompanying prospectus may only be used for the purposes for which
they have been published. The information in this prospectus supplement and the accompanying
prospectus may only be accurate as of the date of this prospectus supplement or the accompanying
prospectus, as applicable. Terms used herein but not otherwise defined shall have the meaning given to
them in the prospectus that accompanies this prospectus supplement.
INTRODUCTORY STATEMENTS
The Republic accepts responsibility for the information that is contained in this prospectus supplement and
the prospectus that accompanies it. To the best of the knowledge and belief of the Republic (which has taken all
reasonable care to ensure that such is the case), the information contained in this prospectus supplement and the
accompanying prospectus is in accordance with the facts and does not omit anything likely to affect the import of
such information.
The Republic is a foreign sovereign state. Consequently, it may be difficult for you to obtain or realize upon
judgments of courts in the United States against the Republic. See "Description of the Securities--Description of
the Debt Securities--Jurisdiction and Enforceability" in the accompanying prospectus.
The distribution of this prospectus supplement and the accompanying prospectus and the offering of the
global bonds may be legally restricted in some countries. If you wish to distribute this prospectus supplement or
the accompanying prospectus, you should observe any applicable restrictions. This prospectus supplement and
the accompanying prospectus should not be considered an offer, and it is prohibited to use them to make an offer,
in any state or country in which the making of the offering of the global bonds is prohibited. For a description of
some restrictions on the offering and sale of the global bonds and the distribution of this prospectus supplement
and the accompanying prospectus, see "Underwriting" on page S-44.
This document is only being distributed to and is only directed at (i) persons who are outside the United
Kingdom and (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to
whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons
together being referred to as "relevant persons"). The global bonds are only available to, and any invitation, offer
or agreement to subscribe, purchase or otherwise acquire such global bonds will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its
contents.
All references in this prospectus supplement (a) to the "Republic" or the "Philippines" are to the Republic of
the Philippines, (b) to the "Government" are to the national government of the Philippines and (c) to "Bangko
Sentral" or "BSP" are to Bangko Sentral ng Pilipinas, the central bank of the Philippines.
Unless otherwise indicated, all references in this prospectus supplement to "P" are to the lawful national
currency of the Philippines, those to "dollars," "U.S. dollars," "US$" or "$" are to the lawful currency of the
United States of America.
S-4

SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the
accompanying prospectus. You should read the entire prospectus supplement and the accompanying prospectus
carefully.
Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . Republic of the Philippines.
Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . US$2,000,000,000 3.70% Global Bonds due 2042.
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . The global bonds will bear interest at 3.70% from February 2, 2017,
payable semi-annually in arrears.
Issue Date . . . . . . . . . . . . . . . . . . . . . . . . February 2, 2017
Interest Payment Dates . . . . . . . . . . . . . February 2 and August 2 of each year, payable to the persons who are
registered holders thereof at the close of business on the preceding
January 28 or July 28, as applicable, whether or not a business day.
The first interest payment will be made on August 2, 2017 in respect
of the period from (and including) February 2, 2017 to (but
excluding) August 2, 2017.
Maturity Date . . . . . . . . . . . . . . . . . . . . February 2, 2042.
Issuer Redemption . . . . . . . . . . . . . . . . . The Republic may not redeem the global bonds prior to maturity.
Status of Bonds . . . . . . . . . . . . . . . . . . . The global bonds will be direct, unconditional, unsecured and general
obligations of the Republic. Except as otherwise described, the global
bonds will at all times rank at least equally among themselves and
with all other unsecured and unsubordinated External Indebtedness
(as defined in the accompanying prospectus) of the Republic. The full
faith and credit of the Republic will be pledged for the due and
punctual payment of all principal and interest on the global bonds.
See "Description of the Securities--Description of the Debt
Securities--Status of Bonds" in the accompanying prospectus.
Negative Pledge . . . . . . . . . . . . . . . . . . . With certain exceptions, the Republic has agreed that it will not create
or permit to subsist any Lien (as defined in the accompanying
prospectus) on its revenues or assets to secure External Public
Indebtedness (as defined in the accompanying prospectus) of the
Republic, unless at the same time or prior thereto, the global bonds
are secured at least equally and ratably with such External Public
Indebtedness. The international reserves of Bangko Sentral represent
substantially all of the official gross international reserves of the
Republic. Because Bangko Sentral is an independent entity, the
Republic and Bangko Sentral believe that the international reserves
owned by Bangko Sentral are not subject to the negative pledge
covenant in the global bonds and that Bangko Sentral could in the
future incur External Public Indebtedness secured by such reserves
without securing amounts payable under the global bonds. See
"Description of the Securities--Description of the Debt Securities--
Negative Pledge Covenant" in the accompanying prospectus.
S-5

Taxation . . . . . . . . . . . . . . . . . . . . . . . . . The Republic will make all payments of principal and interest in
respect of the global bonds free and clear of, and without withholding
or deducting, any present or future taxes of any nature imposed by or
within the Republic, unless required by law. In that event, the
Republic will pay additional amounts so that the holders of the global
bonds receive the amounts that would have been received by them
had no withholding or deduction been required, subject to certain
exceptions. See "Description of the Securities--Description of the
Debt
Securities--Additional
Amounts"
in
the
accompanying
prospectus.
Collective Action Clauses . . . . . . . . . . . The global bonds will contain provisions regarding default,
acceleration, voting on amendments, modifications, changes, waivers
and future issues of global bonds that differ from those applicable to
most of the Republic's outstanding External Public Indebtedness.
Under these provisions, which are described in the section entitled
"Collective Action Securities" on page 140 of the accompanying
prospectus, the Republic may, among other things, amend the
payment provisions of the global bonds and certain other terms with
the consent of the holders of not less than 75% of the aggregate
principal amount of the outstanding global bonds.
Cross-Defaults . . . . . . . . . . . . . . . . . . . . Events of default with respect to the global bonds include (i) if the
Republic fails to make a payment of principal, premium, prepayment
charge or interest when due on any External Public Indebtedness with
a principal amount equal to or greater than $25,000,000 or its
equivalent, and this failure continues beyond the applicable grace
period; or (ii) if any External Public Indebtedness of the Republic or
the central monetary authority in principal amount equal to or greater
than $25,000,000 is accelerated, other than by optional or mandatory
prepayment
or
redemption.
See
"Collective
Action
Securities--Events of Default: Cross Default and Cross Acceleration"
in the accompanying prospectus.
Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . The Republic is offering the global bonds for sale in the United States
and elsewhere where such offer and sale is permitted. Application has
been made to admit the global bonds to listing on the Official List of
the Luxembourg Stock Exchange and to trading on the Euro MTF.
The Republic cannot guarantee
that the application
to the
Luxembourg Stock Exchange will be approved, and settlement of the
global bonds is not conditional on obtaining the listing.
Form, Denomination and
Registration . . . . . . . . . . . . . . . . . . . . The global bonds will be issued in fully registered form in minimum
denominations of $200,000 and integral multiples of $1,000 in excess
thereof. The global bonds will be represented by one or more global
securities registered in the name of a depositary, its nominee or a
custodian. Beneficial interests in the global securities will be shown
on, and the transfer thereof will be effected only through, records
maintained by the depositary and its direct and indirect participants.
S-6

Settlement of all secondary market trading activity in the global
bonds will be made in immediately available funds. See "Description
of the Securities--Description of the Debt Securities--Global
Securities" in the accompanying prospectus.
Further Issues . . . . . . . . . . . . . . . . . . . . The Republic may from time to time, without notice to or the consent
of the registered holders of the global bonds, issue further bonds
which will form a single series with the global bonds. See "Collective
Action Securities--Further Issues of Debt Securities" in the
accompanying prospectus.
Use of Proceeds . . . . . . . . . . . . . . . . . . . The Republic intends to use the net cash proceeds from the sale of the
global bonds to pay the purchase price and accrued interest for the
bonds that it purchases pursuant to its invitation for offers (the
"Invitation for Offers") in respect of certain series of the Republic's
foreign currency-denominated bonds (the "Old Bonds") announced
on January 18, 2017, as well as expenses incurred by the Republic in
that transaction. The Republic may also use any proceeds for general
purposes of the Republic, including budgetary support.
Fiscal Agent . . . . . . . . . . . . . . . . . . . . . . The Bank of New York Mellon (as successor in interest to JPMorgan
Chase Bank, N.A.).
Governing Law . . . . . . . . . . . . . . . . . . . The Fiscal Agency Agreement (as defined below) and the global
bonds will be governed by and interpreted in accordance with the
laws of the State of New York. The laws of the Republic will govern
all matters governing authorization and execution of the Fiscal
Agency Agreement and the global bonds by the Republic.
Conflicts of Interest . . . . . . . . . . . . . . . . As described in the "Use of Proceeds," the Republic intends to use a
portion of the net cash proceeds from the sale of the global bonds to
pay the purchase price and accrued interest for the Old Bonds it
purchases pursuant to the Invitation for Offers. Each of Citigroup
Global Markets Inc., Deutsche Bank Securities Inc. and Standard
Chartered Bank and/or their respective affiliates may be a holder of
certain of the Old Bonds as set forth in the Invitation for Offers and
may, together with their respective affiliates, each receive 5% or more
of the proceeds from the offering of global bonds. Because of the
manner in which the net proceeds are being used, the offering of
global bonds will be conducted in accordance with Financial Industry
Regulatory Authority ("FINRA") Rule 5121. In accordance with that
rule, the appointment of a "qualified independent underwriter" is not
necessary in connection with the offering of global bonds because the
securities offered hereby are investment-grade rated. Accordingly, the
offering of global bonds is being made in compliance with the
requirements of FINRA Rule 5121. Additionally, client accounts over
which Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
and Standard Chartered Bank have investment discretion are not
permitted to purchase the global bonds, either directly or indirectly,
without the specific written approval of the accountholder.
S-7

USE OF PROCEEDS
The Republic intends to use the net cash proceeds from the sale of the global bonds to pay the purchase price and
accrued interest for the bonds that it purchases pursuant to its Invitation for Offers, as well as expenses incurred
by the Republic in that transaction. The Republic may also use any proceeds for general purposes of the
Republic, including budgetary support. None of the underwriters shall have any responsibility for the application
of the net cash proceeds from the sale of the global bonds.
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RECENT DEVELOPMENTS
The information in this section supplements the information about the Republic that is included in the
accompanying prospectus dated February 11, 2016.
2015 Census
The Republic's population was 101.0 million according to the 2015 Census, representing an increase of
9.4% or 8.6 million people as compared to the 2010 Census and an increase of 32.0% or 24.5 million people as
compared to the 2000 Census. The Republic's population increased by 1.7% annually, on average, during the
period from 2010 to 2015, which was lower than the 1.9% average annual growth rate during the period from
2000 to 2010. Of the Republic's 18 administrative regions, Region IV-A (Calabarzon) had the largest population
in 2015 at 14.4 million, followed by the National Capital Region with 12.9 million and Region III (Central
Luzon) with 11.2 million. The combined population of these three regions accounted for approximately 38.1% of
the Republic's population in 2015. The Autonomous Region in Muslim Mindanao (the "ARMM") was the fastest
growing region during the period from 2010 to 2015, with an average annual population growth rate of 2.9%. Of
the Republic's 81 provinces, Cavite was the most populous in 2015 at 3.7 million, followed by Bulacan at
3.3 million and Laguna at 3.0 million. In total, 27 provinces had populations in excess of 1.0 million.
Government
National and Local Elections
On May 9, 2016, national and local elections were held throughout the Philippines, including the election of
the president and vice president of the Republic, and elections for 12 senators and all members of the House of
Representatives. President Rodrigo Duterte, the former mayor of Davao City, Mindanao, and presidential
candidate of the PDP-Laban Party, was elected with 16,601,997 votes, representing 39.0% of the vote, and Vice
President Maria Leonor Robredo, the vice presidential candidate of the Liberal Party, was elected with
14,418,817 votes, representing 35.1% of the vote. Of the 12 Senate seats up for re-election, four were won by
members of the Liberal Party, three were won by candidates who ran as independents, two were won by
members of the National People's Coalition (" NPC") and one was won by each of the PDP-Laban, CIBAC and
Akbayan. Following the election, the leading party in the House of Representatives is PDP-Laban, holding 97
seats, followed by NPC, holding 38 seats, the Liberal Party, holding 35 seats, the Nacionalista Party, holding 21
seats, and others. President Duterte, Vice Presient Robredo and the 17th Congress of the Republic took office on
July 1, 2016, marking the end of President Benigno S. Aquino III's six-year term.
Recent Political Developments
Since taking office on July 1, 2016, President Duterte has made fighting the illegal drug trade a central focus
of his administration. In the first week of the Duterte administration, President Duterte named three alleged
leaders of illegal drug syndicates in the Republic, two of whom are incarcerated at the New Bilibid Prison but are
alleged to continue to operate their respective syndicates from within the prison with the assistance of certain
public officials. On August 25, 2016, based on investigations by the Philippine Drug Enforcement Agency and
the Philippine National Police (the "PNP"), President Duterte released a matrix outlining the alleged drug trade
operations run from the New Bilibid Prison, and linking Francisco Baraan III, the former Undersecretary of the
Department of Justice, Franklin Bucayo, the Regional Director of the PNP Region I, Leila de Lima, Senator and
former Secretary of Justice, Senator de Lima's former driver and bodyguard Ronnie Dayan, and Amado Espino
Jr., member of the House of Representatives and former Governor of Pangasinan, among others. On
September 27, 2016, President Duterte announced that Representative Espino and certain others had been cleared
of wrong-doing; however, enquiries into other public figures connected to the New Bilibid Prison are still
ongoing, including investigations by the Senate Ethics Committee and the House Committee on Justice.
The Duterte administration has also launched an aggressive operation against illegal drugs. As of
January 16, 2017, the PNP has estimated that more than 2,400 people have died, more than 49,300 people have
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been arrested and more than 1,150,000 people have surrendered in anti-narcotics operations by the PNP since
President Duterte took office on July 1, 2016. Representatives of certain international organizations and foreign
nations, including the Office of the High Commissioner of the United Nations and the United States, have
expressed concern over reports of extrajudicial killings in the Republic in connection with these operations. On
September 24, 2016, in a speech to the United Nations General Assembly, Perfecto Yasay, Secretary for Foreign
Affairs of the Republic, stressed that President Duterte is committed to the rule of law and respect for due
process and that the campaign of the Duterte administration to rid the Philippines of illicit drugs will be executed
strictly in accordance with the Philippine Constitution, international norms and human rights treaties. In October
2016, the Government invited a United Nations rapporteur to investigate allegations of extrajudicial killings;
however, Secretary Yasay announced on December 14, 2016 that the mission would not proceed due to a failure
to reach an agreement on the conditions of the rapporteur's trip.
Disbursement Acceleration Program
On July 8, 2016, shortly after the end of President Benigno Aquino's term, left-leaning activists including
the non-governmental organization Bagong Alyansang Makabayan, filed suit with the Office of the Ombudsman
alleging malverzation, usurpation of powers and graft charges against former President Aquino and Budget
Secretary Florencio Abad in connection with the Disbursement Acceleration Program. As of the date of this
prospectus supplement, the Ombudsman's investigation is ongoing.
Duterte Administration Policy
In his first State of the Nation address on July 26, 2016, President Duterte announced his agenda for his
six-year term in office. The President reiterated the commitment he expressed in his inauguration address to
wage a relentless and sustained fight against criminality, illegal drugs and corruption, and he called on the PNP,
barangay chairmen, mayors, governors and other public figures to join him in the fight. In furtherance of this
effort, he committed to the creation of an inter-agency committee on illegal drugs to assist in integrating the
efforts and strengthening the partnership among various branches of the Government to combat illegal drugs.
President Duterte committed to prioritizing the rehabilitation of drug users by increasing treatment and
rehabilitation facilities across the Republic.
President Duterte also stated his policy to improve the welfare of Filipinos in the areas of healthcare,
education, adequate food and housing, environmental preservation and respect for culture. In particular, he
highlighted the importance of fighting terrorism and lawlessness by ensuring that the fundamental needs of all
Filipinos for security, development, fair access to decision-making and the acceptance of identities are met.
President Duterte expressed his desire to continue the macroeconomic policies of the prior Aquino administration
of prudent fiscal and monetary policies to help translate high economic growth rates into better job creation and
poverty reduction.
On infrastructure, President Duterte described his goal of increasing road development projects to benefit
overall economic growth and tourism and to help modernize agriculture with improved irrigation techniques and
modern harvest and post-harvest facilities to minimize losses. Similarly, in the area of environmental regulation,
President Duterte directed the military to intensify its supporting role in fighting illegal logging, illegal mining
and other destructive practices that devastate the natural resources of the Republic.
Finally, President Duterte committed to running a transparent and corruption-free administration. In
particular, President Duterte encouraged the PNP to execute their tasks responsibly and not to abuse their
authority. In this regard, he directed the National Police Commission to efficiently investigate and adjudicate any
reports of wrong doing by police officers and to ensure that the PNP is a valuable ally in the Duterte
administration's fight against the illegal drug trade in the Philippines.
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