Philippines firms seen tapping US market in 2025

The Philippines is likely to tap the US credit market anew next year as it sees possible opportunities to diversify its sources of funding, according to US investment bank J.P Morgan.

In a recent briefing on its 2025 outlook for the Asia credit market (excluding Japan),  Puja Shah, J.P. Morgan’s head of Southeast Asia DCM & Sustainable Finance Asia ex. Japan, noted that “It has been a busy year from the Philippines space, especially for Philippines bank issuers coming to market. We expect that the Philippine banks will be more opportunistic next year.”

Likewise, she said, “We do expect the sovereigns to continue to be active in the market as they were this year, and we expect more corporate supply. We’ve had some very successful transactions this year with some companies, such as SM Group. So I do expect some of the corporate issuers to come back to market next year.”

Shah observed that “a lot of the corporate issuers will look at the US dollar market more as a diversified source of funding. The dollar-local currency differential is becoming lower for some of the Southeast Asian countries and therefore, (it is) more justifiable for them to look at the dollar market.”

She acknowledged, “In general, deals have done very well in the Philippines, and investors have been welcoming of Philippines corporate borrowers.”

Likewise, she said, “Onshore support for Philippines borrowers tend to be very strong. We expect that for next year, this will remain a key attraction for offshore investors who buy into these papers. From an investor’s perspective, Philippines issuers should do relatively well.”

In its briefing, J.P Morgan reported that Asia issuers have so far raised $157 billion, surpassing the full year amount of $107 billion raised in 2023.

The 2024 full year tally may add up to anywhere from $160 billion to $165 billion, exceeding its forecast of just $150 billion. For 2025, J.P Morgan’s forecast is $170 billion, slightly higher than the $166 billion of bond maturities in 2025, translating into a small net positive supply of $4 billion. This projection takes into account the fact that since  the US capital market is only a marginal provider of capital for most Asian issuers, supply is expected to remain yield sensitive.

However, the US financial institution pointed out that while the amount would mean a 54 percent increase from lows in 2023, this year’s number will be about half of the over $300 billion raised during the heydays of 2019 to 2021.

China is the biggest issuer, accounting for 39 percent this year, followed by Korea – accounting for 29 percent, Southeast Asia – 16 percent, Hong Kong – eight percent, India – seven percent and others - one percent.

Financial issuers accounted for 49 percent and sovereigns, only 11 percent.

CTBC Bank Philippines appoints new P/CEO

CTBC Bank (Philippines) Corp., a subsidiary of Taiwan’s largest and most awarded private bank, CTBC Bank Co. Ltd., has announced the appointment of Luis Elizaga as its new president and CEO effective Jan. 1, 2025.  Elizaga will succeed Oliver Jimeno, who will transition to the role of senior advisor to the Chairman of the Board.

“We are confident that Luis’ leadership will bring CTBC Bank Philippines to new heights,” said Jason Wang, chairman of CTBC Bank Philippines. “His extensive experience in various senior executive roles in his past stints and appreciation of CTBC’s unique cross-cultural dynamics position him well to lead the bank toward greater customer focus.”

Elizaga joined CTBC Bank Philippines in 2020 as executive vice president and head of the Institutional Banking Group (IBG). With over 30 years of banking experience, he has been instrumental in driving the bank’s growth in corporate and commercial banking. Under his wing, total IBG loans of the CTBC Philippines have soared from P25 billion in 2020 to more than P42 billion in 2024, marking a remarkable 70 percent increase in just four years.

In response, Elizaga said, “I am honored and excited by the opportunity to lead CTBC Bank Philippines. I look forward to driving our digital transformation journey to enhance and expand our product and service offerings.  On the corporate and commercial segments, we shall continue to leverage on our global presence to serve our customers’ cross-border requirements.”

This year, CTBC Bank Philippines achieved major digital milestones with the launch of its new online banking web interface and mobile banking app, and Ez Start, an online onboarding portal.

GSIS raffle

The Government Service Insurance System (GSIS) is giving away P1.5 million through a raffle this holiday season to express gratitude to its members and pensioners who use the GSIS Touch mobile app in their transactions.

“A total of 300 winners will receive P5,000 each in the GSIS Touch and Win Raffle set for tomorrow, Dec. 17. It is our way of showing appreciation to our members and pensioners as we approach the holiday season while encouraging them to embrace the GSIS Touch app. By using GSIS Touch, they not only gain access to faster, more convenient services, but also get the chance to win and celebrate with us,” GSIS president and general manager Wick Veloso said.

According to Veloso, active members and pensioners who download and register the GSIS Touch app automatically earn one raffle entry. Additional entries can be earned through app-based transactions such as loan applications and compliance with the Annual Pensioners Information Revalidation.

For active members, each loan granted via the GSIS Touch app – Multipurpose Loan (MPL) Flex, MPL Lite, or Emergency Loan – from January this year to the present earns two additional entries. However, members with unpaid loans overdue by more than six  months are not eligible to join.

For pensioners, using the GSIS Touch’s facial recognition feature for APIR compliance earns two entries. Similarly, loans processed through GSIS Touch, such as the Enhanced Pension Loan and Pensioners Emergency Loan, earn an additional two entries per loan.

The winners of the raffle will be selected via an audited electronic system. Prizes will be credited directly to the winners’ GSIS eCards, and they will be notified through their registered mobile number or email address.

Launched in 2020, the GSIS Touch mobile app has over 1.5 million users and offers a wide range of features, including access to membership and pension records, loan applications, claims tracking and premium monitoring. The app also supports biometric login options for enhanced security and convenience.