Corporate bond issues hit P112.5 billion in 2 months

MANILA, Philippines — The private sector has returned to the onshore debt market to borrow around P113 billion through the issuance of peso bonds in the first two months of the year, as listed firms scale up their financing activities to take advantage of capital reforms.

The Philippine Dealing and Exchange Corp. (PDEx) said five listed firms tapped the domestic bond market to raise P112.5 billion in January and February this year.

PDEx president and CEO Antonio Nakpil said 60 percent or P67.5 billion was poured into sustainable investments, particularly climate action-related projects.

Nakpil said that BDO Unibank Inc. and Rizal Commercial Banking Corp. (RCBC) issued green bonds worth P52.7 billion and P14.76 billion, respectively, both maturing in 2024.

Both of the issuances went beyond their original offers, with BDO’s oversubscribed by 10 times from P5 billion and RCBC’s exceeded by five times from P3 billion.

Likewise, Bank of the Philippine Islands (BPI) sold P27 billion in fixed-rate bonds due in 2024, while SM Investments Corp. listed P15 billion of its own payable in 2025 and 2027. Century Properties Group Inc. (CPGI) secured P3 billion in fixed-rate bonds maturing in 2027.

Nakpil said two of the issuers, BPI and CPGI, used the electronic Securities Issue Portal (e-SIP) that allows firms to process their documents and auction their securities online.

Based on data, a total 13 listings by 12 firms, including pioneer issuer Ayala Land Corp., pushed through with their issuances through the e-SIP since its launch a year ago.

The Securities and Exchange Commission (SEC) said that it anticipates large and small-scale firms alike to maximize the upcoming reforms to be rolled out by the outgoing administration.

SEC commissioner Ephyro Luis Amatong said that some small-scale firms are expected to go public outside of the local bourse.

Tagum Global Medical Center Inc., has already received a pre-effective letter from the SEC to offer shares to the public to raise funds for their new projects.

Amatong also said the SEC may release the rules and regulations for umbrella funds for mutual funds within the second quarter.

Once issued, corporations could set up multiple sub-funds under one investment firm, changing the existing restriction of just one fund per investment firm.