Fund-raising activities at Philippine Dealing & Exchange Corp., the operator of the country’s fixed-income exchange, has reached P107.4 billion this year, down 44 percent from the record P190 billion registered in 2014.
PDEX chairman and chief executive Cesar Crisol said the exchange expects companies to continue to tap the bond market in 2016 despite the slowdown this year.
“I’m always hopeful. At least we hit over a P100 billion this year because there was really a slowdown, although 2014 was really a record year at P190 billion,” Crisol said in an interview at the sidelines of the P4-billion bond listing ceremony of Sta Lucia Land Inc., the last bond listing in 2015.
“[For 2016], we are hoping to at least equal of this year,” he said.
PDEX is counting on companies building infrastructure projects under the Public-Private Participation program of the Aquino administration as well as conglomerates and real estate companies to raise fund through the fixed-income exchange next year.
Companies with maturing financial obligations may also opt to refinance their debt through bond issuances.
Ayala Land Inc. last month indicated plans to raise P50 billion in fresh capital through the issuance of corporate bonds and commercial papers.
Crisol said companies might conduct planned fund raising activities in the second half of 2016 given the recent hike in US interest rates.
“People will be assessing the situation. Companies may have firmer plans about their fund raising activities in the second half of the year as they would still have to adjust to the Fed,” Crisol said.
The Federal Reserve last week raised interest rates for the first time in almost a decade. The increase is expected to be followed by “gradual” tightening as officials watch for signs of continued US economic recovery.
Eleven companies raised fund through PDEX this year, namely SM Prime Holdings Inc., P20 billion; Land Bank of the Philippines, P6 billion; Filinvest Land Inc., P8 billion; Aboitiz Equity Ventures Inc., P24 billion; 8990 Holdings Inc., P9 billion; South Luzon Tollways Corp., P7.3 billion; Ayala Land Inc., P7 billion; Phoenix Petroleum Corp., P1.49 billion; Robinsons Land Corp., P12 billion; BDO Unibank Inc., P7.5 billion; and Sta. Lucia Land, P4 billion.
The new listing in 2015 brought outstanding listed corporate securities volume with the PDEX at P539.5 billion issued by 35 companies.
