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 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 Nakpil, president and chief executive officer of Philippine Dealing & Exchange Corp (PDEX), 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 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