Bond listings seen breaching P100-B mark in 2014
MANILA, Philippines – The Philippine Dealing and Exchange (PDEx) Corporation expects total listing in the bond market to breach the P100-billion level in 2014.
It could even surpass the record P111.15 billion total bond listing recorded in 2012, said PDEx president and chief operating officer Cesar Crisol in an interview during the bond listing of Ayala Land Inc.
There are 7 companies that have listed with PDEx year-to-date, for a total of P89.8 billion:
- JG Summit Holdings Inc. - P30 billion
- Philippine Long Distance Telephone Company - P15 billion
- San Miguel Brewery Inc. - P15 billion
- Filinvest Land Inc. - P8.8 billion
- Ayala Land Inc. - P8 billion
- Manila North Tollways Corporation - P7 billion
- ABS-CBN Corporation - P6 billion
Three more companies have pending bond applications, namely Vista Land & Lifescapes Inc. (P5 billion), SM Investments Corporation (P15 billion) and Cebu Holdings Inc. (P5 billion). At least 3 others expressed their intent to issue bonds in 2014, but have not made actual filing. They are SM Prime Holdings Inc. (P20 billion), Robinsons Land Corporation (P10 billion) and DoubleDragon Properties Inc. (P3 billion).
"We will definitely breach the P100 billion level this year. The issuers are going to the capital markets to be able to tap liquidity while investors are looking for spreads over government securities. Corporate bond have premium over government securities,” said Crisol.
Currently, P406 billion worth of bonds issued by a total of 25 companies are listed with PDEx.
Most of the proceeds from recent bond listings would be used for expansion and infrastructure projects, said Crisol. These would have a "multiplier effect" on the local economy, he added. – Rappler.com