In 1521, Portuguese explorer Ferdinand Magellan became the first person from Europe to reach Asia by sailing west, a voyage of which he would meet an untimely death in the island of the Philippines. Spain sent expeditions to colonize the East Indies in their competition with Portugal to seize control over the spice trade. However, all of these expeditions failed. It was not until Miguel López de Legazpi, sailing from Mexico with five ships and five hundred men, reached the Philippines in 1565 and a Spanish settlement was established. López de Legazpi was greeted by hostile Muslim tribes opposing a foreign invasion. His attempt to land on the island of Cebu resulted in the death of one of his soldiers prompting him to explore another island and seek trade with various tribes.

Sailing south toward the island of Mindanao, López de Legazpi's fleet encountered highwinds forcing them to sail northward to the island of Bohol. There, he captured a vessel from Borneo whose Malay sailors informed the Spaniards that the natives inhabiting the region traded with people from Borneo and Indonesia. Arriving in Bohol, López de Legazpi noticed the hostility of the people. The Malayan servant explained that such hostility was due to the expeditions conducted by the Portuguese from the Moluccas islands. In 1563, Portuguese fleets arrived in Visayan waters and enslaved about 1,000 inhabitants. López de Legazpi, with the help of the Malayan sailor, explained to the tribes in Bohol that they were not Portuguese and that they had come to the islands to trade. Upon learning this, the chieftains and their tribes became friendlier and welcoming to the Spaniards.
The Ceremony began with the arrival of Miguel López de Legazpi in Bohol in 1565 and the establishment of allegiance by Datu Sikatuna to the king of Spain. They made a cut on their left arm with a dagger and poured their blood into a cup filled with wine, which they both drank in honor of their friendship.