Philippine Dealing & Exchange Corp. expects bond listings to reach a range of P300 billion to P450 billion this year, lower than the record P508 billion achieved in 2022, a top executive said Monday.
“The likelihood of us hitting two record years in a row― its not so likely. It can happen, and it would be nice if it happens but we are not going to pin our hopes on it,” PDEx president and chief executive Antonino Nakpil said Monday at the sidelines of Bank of the Philippine Islands’ P20.3-billion bond listing ceremony.
Nakpil said that despite expectation of possible slowdown in interest rate hikes, the movement was not fully clear yet, and market participants would continue to look at inflation and developments overseas before making decisions.
Nakpil said big corporations were expected to continue to raise capital through the bond market to finance expansion plans.
“It is still positive and still bouyant,’ Nakpil said when asked for his outlook on the bond market.
Total corporate bond listings reached an all time high of P508 billion in 2022, or more than double the P213 billion recorded in 2021 amid the high inflation and interest rate environment.
Nakpil said all issuers opted for jumbo issuances. “Last year could be one off because of what they call revenge spending, so issuers were opting for revenge issuances,” Nakpil said.
Among big corporations that tapped the bond market were include BDO Unibank Inc. which raised a record P52.7 billion through the issuance of ASEAN Sustainability bonds; Security Bank Corp. which raised P30.6 billion from two issuances; BPI with P27 billion; Metropolitan Bank & Trust Co. with P23.71 billion; and Rizal Commercial Banking Corp. with P14.75 billion.
Ayala Land Inc. also raised P45 billion from the domestic bond market, while parent firm Ayala Corp. raised P15 billion. ACEN Corp. also generated P10 billion in proceeds from the issuance ASEAN Green Bonds.
Aboitiz Equity Ventures Inc. issued P20 billion worth of bonds last year.