PDEX expects bond listings to hit P150B in 2014

MANILA, Philippines – The Philippine Dealing and Exchange (PDEX) Corporation expects bond listings to hit the P150-billion mark this year, with companies looking to raise funds for expansion and acquisition plans.

PDEX operates the Philippines’ fixed income exchange.

This comes just months after it predicted bond listings to breach the record P111.15 billion registered in 2012.

On Friday, the listing of P5 billion retail bonds by Cebu Holdings Inc. pushed bond listings with the PDEX to P114.8 billion.

PDEX president and chief operating officer Cesar Crisol said 2014 has become a record year for new listings.

“This makes 2014 a record year for new listings and we are only still in the first half of the year,” Crisol said.

He added that capital raising through bonds was expected to remain strong in the second half of 2014.

“It is possible to achieve P150 billion bond listing for this year as companies will continue to raise fund for projects,” he said.

Year to date, 10 companies listed a total of P114.8 billion worth of bonds, exceeding last year’s total listing of P83.5 billion. These companies include:

• Filinvest Land Inc. – P8.8 billion
• Philippine Long Distance Telephone Company – P15 billion
• ABS-CBN Corporation – P6 billion
• JG Summit Holdings Inc. – P30 billion
• Manila North Tollways Corporation – P7 billion
• San Miguel Brewery Inc. – P15 billion
• Ayala Land Inc. – P8 billion
• Vista Land and Lifescapes Inc. – P5 billion
• SM Investments Corporation – P15 billion
• Cebu Holdings – P5 billion 

Two more companies have pending applications to issue bonds:

• GT Capital Inc. – P12 billion
• SM Prime Holdings Inc. – up to P25 billion

There are currently P425.76 billion total outstanding amount of corporate bonds listed with PDEX, representing a compounded annual growth rate of 87%. – Rappler.com