PH and Japan to Sign 11 Loan Deals Worth Nearly ₱139 Billion

The Philippines and Japan are set to sign 11 additional loan agreements this year valued at ¥371 billion — approximately $2.4 billion or ₱139 billion — as the two countries further strengthen partnerships in trade, investment, and infrastructure, the Department of Finance (DOF) said.

The Philippines expects the signing of three critical loan agreements totaling ¥243.31 billion to be extended by JICA. (Photo: Department of Finance Facebook)

“Our cooperation pipeline remains strong and forward-looking,” Finance Secretary Frederick D. Go said in his keynote address at the 42nd Annual Joint Meeting of the Japan-Philippines Economic Cooperation Committee (JPECC) and the Philippines-Japan Economic Cooperation Committee (PHILJEC) in Manila.

“Just two weeks ago, we witnessed another milestone in our long-standing collaboration with the signing of the Exchange of Notes for the Proposed Second Supplemental Loan of the Metro Rail Transit Line 3 Rehabilitation Project,” he said, thanking the Government of Japan and the Japan International Cooperation Agency (JICA).

Go said that as Japan’s fiscal year 2025 concludes this March, the Philippines expects the signing of three critical loan agreements totaling ¥243.31 billion to be extended by JICA.

“For Japanese fiscal year 2026, we are targeting the signing of 11 additional loan agreements with an estimated total of ¥371.31 billion, or roughly $2.41 billion. This reflects continued alignment between our infrastructure priorities and Japan’s development support,” the DOF chief added.

Prior to their joint meeting, JPECC and PHILJEC delegates paid a courtesy call on President Ferdinand R. Marcos Jr. at Malacañang Palace.

The President underscored Japan’s vital role as a strategic partner in advancing trade, investment, and quality infrastructure collaboration.

According to the DOF, key investment opportunities for Japanese companies include semiconductors and electronics, automotive manufacturing — including electric vehicles — aerospace, and the renewable energy value chain.

Japan remains the Philippines’ second-largest trading partner, with bilateral trade reaching approximately ₱1.27 trillion last year, with the Philippines posting a surplus. Japan is also a top source of foreign direct investment, accounting for ₱42.5 billion in inflows in the first 11 months of 2025.

As of December 2025, total loan and grant commitments from Japan reached approximately $13.96 billion, representing 33.54% of the country’s total Official Development Assistance (ODA) portfolio.