August 26, 2022

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PHL corporate bond issuance may hit $7B in 2022

Philippine companies are seen raising a record P400 billion ($7.14 billion) through bond issuances this year to fund expansion plans and retire debts, the country’s bond market operator said on Friday.

Year-to-date, companies have raised P371 billion via bonds, with a robust pipeline in the coming months. Bond listings on the Philippine Dealing & Exchange Corp (PDEx) fell by nearly half to P213 billion last year from a record high of P387 billion in 2020.

“If last year was a year of caution, this year, the firms are back for funding,” Antonino A. Nakpil, PDEx president and chief executive officer, told Reuters.

Top issuers include banks and property firms, and conglomerates. In July, San Miguel Corp. raised P30 billion, the largest domestic bond deal by a non-banking institution.

Philippine companies, backed by financial markets despite higher lending rates, are pursuing expansion plans this year, banking on an economic recovery from the coronavirus disease 2019 (COVID-19) pandemic.

Companies are taking advantage of market liquidity to fund expansion and pay down debts, Mr. Nakpil said. On Friday, property firm Robinsons Land Corp. listed P15 billion in a bond deal oversubscribed by 12 times.

To date, there are 54 companies that have a combined 193 bond issues in the Philippines’ fixed income trading platform. — Reuters