MANILA: The Philippines has raised $2.25 billion from a three-tranche bond issue, it said on Tuesday, braving global market volatility spurred by Russia's invasion of Ukraine and the U.S. Federal Reserve's monetary policy tightening.

The deal comprises $1 billion from an inaugural 25-year green bond offer, $500 million worth of five-year bonds and $750 million in 10.5-year bonds.

The bonds were priced at 3.229%, or a spread of 90 basis points over Treasuries for the five-year tranche, 3.556% or 125 bps over Treasuries for the 10.5-year issue, and 4.2% for the 25-year notes, 50 bps tighter than the initial guidance of 4.7%.

The deal follows last year's offshore debt issues by the Philippines including a $3 billion dual-tranche global bonds, the 2.1 billion euro triple-tranche global bonds, and the 55 billion yen Samurai bonds.

The Philippines, one of Asia's most-active sovereign debt issuers, is looking to raise 2.2 trillion pesos ($42 billion) to plug its budget deficit this year, about 75% of which is to be sourced from the domestic market.

"The fact that our debut sustainability bond tranche secured the strongest demand...highlights the strong investor confidence in the national government's commitment to achieving sustainable development and mitigating climate change," Finance Secretary Carlos Dominguez said in a statement, referring to the green bond offer.

The Southeast Asian country has pledged to reduce its greenhouse gas emissions by 75% by 2030.

Proceeds from the two shorter-term bonds are intended for budget financing.

National Treasurer Rosalia de Leon said the issue, which was the first offering by a Southeast Asian sovereign borrower this year, has reopened the Asian bond markets for long-dated notes.

Bank of China, Citigroup, Credit Suisse , Deutsche Bank, Goldman Sachs, Mizuho , Morgan Stanley, Standard Chartered and UBS were the lead managers and bookrunners for the three-tranche issue.

(Reporting by Enrico Dela Cruz; Editing by Christopher Cushing and Ed Davies)