Philippine Dealing & Exchange Corp., the operator of the country’s fixed-income exchange said over the weekend Philippine companies are expected to generate more than P200 billion through bond issuance this year to fund expansion and repay debt.
This figure however is significantly lower compared to record P508 billion worth of capital raised from the bond market in 2022 and also lower compared to earlier target of up to P450 billion for 2023.
PDEx president and chief executive Antonino Nakpil attributed the lower bond listing this year to current market uncertainties.
“This year is certainly much lower than last year’s record setting pace and understandably so the market continues to deal with lingering fog over the state of the economy and its near future,” Nakpil said.
“With the present rate of issuances we maybe on the way of replicating 2021’s figure of around P200 plus billion worth of listing,” he said.
PDEx has admitted seven new corporate bond listings worth P92.48 billion As of the first half of the year, .
Despite the decrease in bond issuance for this year, Nakpil said companies continue to consider raising funds through the capital market to finance their capital requirements.
Investors have also not shown weakening appetite to support the corporate issuers needs, Nakpil said.
“So engine of capital is working and the job remains to spread the benefits of this mechanism for more corporate issuers to be able to access,” Nakpil said.
Nakpil said PDEx plans to conduct webinars to micro, small and medium enterprises to lure more companies to capital requirements to the bond market.
The seven companies that raised funds from the bond market this year were Bank of the Philippine Islands (P20.3 billion), Citicore Energy REIT Corp. (P4.5 billion), Century Properties Group Inc. (P3 billion), SM Prime Holdings, Inc. P33.3 billion), Alsons Consolidated Resources, Inc. (P1.38 billion), Ayala Land Inc. (P15 billion) and Robinsons Land Corp. (P15 billion).
Conglomerate Aboitiz Equity Ventures Inc. earlier reported plans to raise as much as P17.45 billion from issuance of fixed-rate retail bonds in the third quarter of the year.