PNB Lists its Largest LTNCTD Offer to Date on PDEx

PNB Photo Release

27 February 2019, Makati Philippines – Philippine National Bank (PNB) listed PHP 8.22 billion worth of Long-Term Negotiable Certificates of Time Deposit (LTNCTD) on the Philippine Dealing & Exchange Corp. (PDEx) bourse, the largest turnout in PNB’s offerings since it tapped the local debt market in 2014.

This third listing from the banking sector brings the year-to-date total of new listings to PHP 58.22 billion and sets the total outstanding amount of listed corporate bonds at PHP 1.10 trillion issued by 50 companies, comprised of 166 securities.

PDEx President and COO Antonino A. Nakpil commended the strong investor demand for PNB’s LTNCTD, which was nearly three times oversubscribed. He also highlighted the same positive experience of other listed bank issuers of LTNCTDs and bonds.

“This is clearly punctuated by the fact that in the four-month period from November 2018 up to today, the banking sector has now raised PHP 122.2 billion from their issues.  Most notably, the issuer banks have continued the conversion of short-term oriented depositors to longer-term oriented investors, important for the further development of our capital market”, Mr. Nakpil said.

PNB President and CEO Wick Veloso remarked: “We are grateful to our arrangers and to all those who have made this [offering] possible. This landmark transaction is a testament of how PNB aims to continue to improve for our customers, and at the same time move forward as a companion of the government in nation-building.”

The listing ceremony was also attended by PNB EVP and Chief Financial Officer Nelson C. Reyes,  and PNB EVP and Retail Banking Sector Head Bernie H. Tocmo. The Issue Joint Lead Arranger and Selling Agents led by The HongKong and Shanghai Banking Corporation Limited Treasurer and Head of Markets Roberto D. Baltazar, and ING Bank N.V., Manila Branch Country Manager Hans B. Sicat were also present. #

Press Release – PNB LTNCTD Due 2024_FINAL

BDO Lists the Largest Single Bond Issue Size on PDEx

BDO Photo Release

11 February 2019, Makati Philippines – BDO Unibank, Inc. (BDO), the country’s largest bank, listed on the Philippine Dealing & Exchange Corp. (PDEx) its maiden issue of PhP 35 Billion which marks the largest amount ever issued and listed through a single security.

PDEx President and COO Antonino A. Nakpil complimented BDO’s active participation and commitment in developing the capital market. He said that “first and largest” is consistent with BDO’s activities over the past 15 months in the USD-denominated segment of the capital markets, as it was the first Philippine bank to issue a USD-denominated Green Bond. “We understand that, to date, it also holds the record for issuing the largest USD-denominated Regulation S bond offering,” said Mr. Nakpil.

BDO Treasurer and Executive Vice President Dalmacio D. Martin remarked: “This deal allows us to effectively diversify our liquidity sources to support our business expansion. The 1.5-year bond was priced at a yield of 6.42%, equivalent to a spread of 25 bps over the GS benchmark. The tightness to the local sovereign risk, stands as a testament to BDO’s solid credit profile.”

With this bond listing, the SM group of companies’ cumulative level of outstanding securities listed on PDEx stands at PhP 226.02 Billion, representing 21% of the total of PhP 1.099 Trillion of Corporate Fixed-Income instruments listed in the organized market.

While this listing year started just this month, this second listing has already set the volume of new listings to PhP 50 Billion, a 100% increase from the same period last year. BDO is the fifth bank to issue bank bonds in the PDEx bourse, bringing the total volume of bank issues listed on PDEx to PhP 299.09 Billion.

The event was held at the PDS Group Assembly Hall and was also graced by the Issue’s Sole Arranger, Bookrunner, and Market Maker Standard Chartered Bank led by CEO Lynette Ortiz.

Press Release – BDO Bonds Due 2020_FINAL

RCBC Lists ASEAN’s First Peso Green Bond on the PDEx Bourse

RCBC Photo Release

01 February 2019, Makati Philippines – Rizal Commercial Banking Corporation (RCBC) started out this year’s listing activities in the local debt market, which marks two milestones for the Yuchengco-led bank. The PhP 15 Billion 18-month bonds are RCBC’s first-issued bonds and the first Philippine Peso Denominated ASEAN Green Bonds to be listed in the PDEx bourse.

The newly-listed green bonds were issued under RCBC’s Green Finance Framework which is the first green bond from the Philippines issued under the ASEAN Green Bond Standards 2018. It is also aligned with the International Capital Market Association’s (ICMA) Green Bond Principles 2018.

RCBC President Gil A. Buenaventura said “The issuance is also a positive step given the adoption of the ASEAN Green Bond Standards by the Securities and Exchange Commission of the Philippines in August 2018. With this first in the country initiative, RCBC affirms its commitment to support environmental sustainability in the Philippines through our operations, our partners and the businesses we serve.”

In his welcome remarks, PDEx President and COO Antonino A. Nakpil highlighted the ease of issuing bank-issued bonds, following a framework that is quickly proving to be a most efficient engine for issuances. “From 06 November 2018 up to today, we now have a total of PhP 79 Billion outstanding and listed bank-issued bonds from just four issuers, with each issue so far including RCBC, all oversubscribed.”

For his part, SEC Commissioner Ephyro Luis B. Amatong also commended the positive response of investors to RCBC’s green bonds. He said: “While RCBC is the first bank to issue a Green Peso Bond, and only the fourth bank to issue bonds under BSP Circular 1010, its ASEAN Green Bond was three times over-subscribed; and has achieved the lowest cost of borrowing of any bank so far, at 6.7315%, for its 1.5 year paper. It also appears that RCBC’s issuance has benefited from many of the ancillary advantages that Green Bonds are generally known to provide. One key benefit is a broadening of the investor base and higher visibility to ESG-oriented investors. I am told that, in this case, retail investors, particularly new retail investors, came out in force – comprising more than 60% of the issue.”

With this listing, RCBC’s cumulative level of outstanding fixed income securities listed shall be PhP 23.18 Billion. This also brings the total volume of bank issues listed on PDEx to PhP 264.09 Billion, increasing the total level of tradable corporate debt instruments to PhP 1.063 Trillion issued by 50 companies with 165 securities.

The event was held at the PDS Group Assembly Hall and was also graced by SEC Director Vicente Graciano Felizmenio, RCBC Deputy CEO Eugene S. Acevedo, RCBC Senior Executive Vice President and Treasurer Horacio E. Cebrero III, ING Bank N.V., Manila Branch Hans B. Sicat, and The Hongkong and Shanghai Banking Corporation Limited President and CEO Graham FitzGerald. #

PDEx Press Release – RCBC Green Bonds Due 2020 FINAL

Phoenix Petroleum’s PhP 7 Billion Commercial Paper Program Caps 2018 Listings on the PDEx Organized Secondary Market

PNX Photo Release

27 December 2018, Makati Philippines – Phoenix Petroleum came back to the Philippine Dealing & Exchange Corp. (PDEx) bourse for the second time this year for the listing of a new Commercial Paper Program with an initial tranche of PhP 7.0 Billion out of the PhP 10 Billion approved program by the Securities & Exchange Commission.

This 29th and last listing for the year marks Phoenix’s fifth return to the podium. It was in 2014 when Phoenix debuted in the local debt market with the first ever listing of a Short-Term Commercial Paper (STCP); and that issuance paved the way for other Issuers to follow.

Phoenix Petroleum Chief Finance Officer Ma. Concepcion De Claro said: “Since the start, we have recognized the role of financial markets as a dynamic source of funding for our initiatives. This is why, today, we mark another milestone with the biggest issuance of STCP at 10 billion pesos.”

The local debt market finished the year with a total of PhP 256.39 Billion in new listings, representing a 24% increase from last year‘s figures. The total outstanding amount of bonds listed and enrolled in PDEx reached PhP 1.049 Trillion for a 32% increase from 2017.

PDS Group OIC Ma. Theresa Ravalo hoped that the buoyancy in the primary market continues into the coming year. “We assure you of PDS Group’s commitment toward innovation, investor protection, and fostering greater efficiency of the markets in which we are engaged,” concluded Ms. Ravalo.

The event was also graced by Phoenix Petroleum Officers including Chief Operation Officer Henry Albert Fadullon, Treasurer and Head of Corporate Finance Joseph John Ong, and AVP – Treasury Reynaldo Phala. PNB Capital and Investment Corporation Vice President Sabino de Leon III was also present, being the Lead Sole Issue Manager, Lead Underwriter, and Sole Bookrunner for this issue. #

Press Release – PNX CP Due 2019 FINAL

Vista Land Caps Corporate Bond Listings on PDEx with its PhP 10 Billion Fixed Rate Bonds Due 2023 and 2025

VLL Photo Release

21 December 2018, Makati Philippines – The listing of Vista Land’s (VLL) PhP 10 Billion five-year and seven-year bonds capped the corporate bond issuances in the Philippine Dealing & Exchange Corp. (PDEx) for 2018. This brings the total face amount of new bonds listed to a record of PhP 249.39 Billion, a 20% increase year-on-year.

The VLL Bonds Due 2023 and 2025 form part of the second tranche of Vista Land’s original approved PhP 20 Billion shelf registration, which started at an initial amount of PhP 5 Billion and rose to twice its size to PhP 10 Billion.

Vista Land President and CEO Paolo Villar said: “The continued development of the capital market is of critical importance to our country and of course to companies like Vista Land, we do appreciate the efforts being exerted by the PDS Group leadership to make the market environment more attractive and investor friendly.”

This 28th listing for the year increases the total outstanding amount of bonds listed on PDEx to PhP 1.04 Trillion issued by 50 companies comprised of 162 securities.

PDS Group OIC Ma. Theresa B. Ravalo remarked: “As we look back at 2018, this year has really been the year of investors. As a segment they have established their consistency of demand regardless of how difficult the conditions have been in the fixed income secondary market, accounting for 63% of the traded volume in this fixed income market.”

Ms. Ravalo also highlighted the Group’s effort to sustain the momentum for fixed income issuances into next year by leveraging on the experience and expertise of Bloomberg as a platform in the fixed income market. “We have already initiated discussions on various instrument types that the Bloomberg pricing engine can accommodate. We look forward to the launch of one or two of these structures within the early part of 2019,” said Ms. Ravalo.

The event was graced by Vista Land Officers and Directors including Chairman Manuel B. Villar, Jr., Director Camille A. Villar, Senior Officer of MB Villar Company Jerry M. Navarrete, Chief Operating Officer Cynthia J. Javarez and Chief Financial Officer, Brian N. Edang. The Issue Participants were also present including China Bank Capital Corporation Ryan Martin L. Tapia, China Banking Corporation President William Whang, Multinational Investment Bancorporation Chairman and President Marilou C. Cristobal, and Credit Rating and Investors Services Philippines, Inc. President Emmanuel A. Leyco. #

Press Release – VLL Bonds Due 2023 and 2025_FINAL

Union Bank of the Philippines Lists Maiden Issuance of PhP 11 Billion Fixed Rate Bonds Due 2020 on PDEx

UBP Photo Release

07 December 2018, Makati Philippines – The Union Bank of the Philippines (UBP) listed its maiden issuance of PhP 11 Billion Fixed Rate Bonds Due 2020 on the Philippine Dealing & Exchange Corp. (PDEx) organized secondary market. This marks the first tranche of UnionBank’s PhP 20 Billion multitranche bond and commercial paper program.

UnionBank is the third bank to list corporate bonds under the newly implemented guidelines that would facilitate banks’ access to funding through bond issuances. In just two months, there has been a total of PhP 46 Billion bank bonds listed in the PDEx bourse.

Union Bank Chief Finance Officer and Treasurer Jose Emmanuel U. Hilado expressed his delight to the overwhelming interest from both institutional and retail investors, increasing UBP’s initial offer size of PhP 5 Billion to PhP 11 Billion. Mr. Hilado is optimistic that with the features of the newly listed UBP bond, it could become a more liquid instrument that could help the development of the local capital market.

This 26th listing for the year brings the year-to-date total of new listings to PhP 221.39 Billion, an 18% increase from the same period last year, while the the total outstanding amount of corporate bonds listed on PDEx has crossed over the PhP 1 Trillion mark, making 2018 a banner year for the corporate bond primary market.

“We should also celebrate the “unity of purpose” that underpinned the establishment of the bank issued bond framework, as demonstrated by the keen and close coordination by both regulators, the Bangko Sentral and the Securities & Exchange Commission, and the underwriting community, as both of your underwriters today can rightfully attest. We hope to carry over such unity of purpose to each of the other initiatives we pursue together with industry and regulatory stakeholders in the coming year,” said PDEx President and COO Antonino A. Nakpil.

Union Bank President and CEO Edwin R. Bautista attended the event together with the joint lead arrangers, bookrunners and selling agents, The Hongkong and Shanghai Banking Corporation Limited President and CEO Graham Fitzgerald and Standard Chartered Bank CEO Lynette V. Ortiz. #

Press Release – UBP Bonds Due 2020 FINAL

Bank of the Philippine Islands’ Maiden Bond Issuance Brings the Corporate Securities Market to PhP 1 Trillion

BPI Photo Release

06 December 2018, Makati Philippines – Bank of the Philippine Islands listed its debut peso fixed rate bonds on the Philippine Dealing & Exchange Corp. (PDEx) organized secondary market. The PhP 25 Billion BPI Bonds, which form part of BPI’s PhP 50 billion bond and commercial paper program, is the largest single bond issue listed in PDEx.

This peso bond is BPI’s third fund raising in the capital markets this year. In April, BPI raised PhP 50 Billion in equity via rights offering while it raised $600 Million via debut US dollar bond in August.

BPI President and CEO Cezar P. Consing remarked: “The amounts raised indicate the confidence we have in our country and in ourselves; that we raised these amounts at compelling terms to us in a year when almost all financial assets globally registered negative returns, speaks to the strength and drawing power of BPI. More importantly, it speaks to our commitment to our country. The Philippines is on the roof and BPI is, as we have always done, stepping up to finance our country’s growth.”

BPI’s listing also set two milestones for the PDS Group, by being the inaugural bond issuance on the upgraded PDTC Fixed Income Registry System and bringing the Total Outstanding Face Amount of Corporate Securities listed on PDEx to PhP 1 Trillion.

This 25th listing for the year brings the year-to-date total of new listings to PhP 210.39 Billion, a 12% increase from the same period last year. This also makes 2018 a banner year with the highest volume of listings in a single year, exceeding the 2017 figure of PhP 207 Billion.

PDS Group Officer-in-Charge Ma. Theresa B. Ravalo and PDEx President and COO Antonino A. Nakpil expressed their gratitude to the entities that fueled the growth of corporate bonds, including the Securities and Exchange Commission (SEC), Intermediaries, and Issuers. They highlighted that the unity of purpose of all the stakeholders in supporting the principled approach to market development while nurturing investors, would sustain all PDS initiatives and guide the Group in assessing changes from the promise of new technologies or alternative structures and engagements.

The event was held at the PDS Assembly Hall and was graced by SEC Commissioner Ephyro Luis B. Amatong, BPI Directors and Officers including Chairman Jaime Augusto Zobel de Ayala, Director Ignacio R. Bunye, Director Octavio V. Espiritu, and Executive Vice President and Treasurer of Global Markets Segment Antonio V. Paner. It was also attended by the Issue Participants, The Hongkong and Shanghai Banking Corporation Limited President and CEO Graham Fitzgerald and BPI Capital Corporation President Reginaldo Anthony B. Cariaso. #

Press Release – BPI Bonds Due 2020 – FINAL

AEON Credit Service Philippines Enrols the Pilot Issuance in the Philippines under the Asean+3 Multi-Currency Bond Issuance Framework

AEON Photo Release

16 November 2018, Makati Philippines – AEON Credit Philippines enrolled its PhP 1 Billion Fixed Rate Notes Due 2021 and 2023 in the PDEx organized secondary market. This marked the first issuance in the Philippines under the ASEAN+3 Multi-currency Bond Issuance Framework (AMBIF) which the Asian Development Bank (ADB) has developed and promoted through its Asian Bond Market Initiative and ASEAN+3 Bond Market Forum.

AEON’s enrollment signified the expansion of the local debt market to new types of Issuers, being the first Restricted Issuer and Non-Reporting Company to enroll its securities in the organized secondary market, proceeding to a path that other Non-Quasi-bank finance firms may follow.

AEON’s three-year and five-year Notes are also the first Credit Guarantee and Investment Facility (CGIF)-Guaranteed Corporate Issuance in the Philippines under such format.

AEON Philippines President and CEO Takayuki Araki mentioned that proceeds from the issuance will primarily fund the operations of its Tricycle and 4-Wheel Loans. “AEON Philippines remains committed to AFS’ (AEON Financial Service Co. Ltd.) vision of building a financial platform aimed at serving more customers in more locations, thereby enabling each individual to maximize future opportunities through effective use of financial services. This AFS initiative likewise confirm AEON Philippines’ full support to the Philippine government’s goal of financial inclusion,” added Mr. Araki.

PDEx President and COO Antonino Nakpil remarked: “This is not a large amount to enroll by today’s standards, but the modesty of the amount belies the significance of today’s enrollment on multiple fronts.” Mr. Nakpil recognized and thanked the proactive support of the Securities and Exchange Commission (SEC), largely through Commissioner Ephyro Amatong, for facilitating the SEC approval of the guidelines that underlie this enrollment. He also expressed gratitude to the ADB and its CGIF for the patient perseverance in promoting the AMBIF and its continuing commitment to develop the ASEAN+3 bond markets.

This enrollment brought the 2018 year to date total amount of new listings to PhP 185.4 Billion and the total outstanding amount bonds listed to PhP 977.3 Billion, issued by 50 companies comprised of 158 securities.

The enrollment ceremony was held at the PDS Group Assembly Hall and was also graced by Asian Development Bank Principal Financial Sector Specialist Stephen Schuster, Credit Guarantee & Investment Facility Vice President Operations Boo Hock Khoo, First Metro Investment Corporation Senior Executive Vice President/ Head of Investment Banking Group Jose Pacifico Marcelo, and Metropolitan Bank & Trust Company Senior Vice President Antonio Ocampo, Jr.#

PDS Press Release – AEON Notes Due 2021 and 2023 FINAL

Metrobank Pioneers First Issuance and Listing of Bank-Issued Bonds in the Local Debt Market

MBTC Photo Release

09 November 2018, Makati Philippines – The local debt market welcomed the first issuance and listing under the newly implemented Guidelines for Bank-Issued Bonds with Metrobank’s PhP 10 Billion Fixed Rate Bonds on the Philippine Dealing & Exchange Corp. (PDEx) bourse. This 23rd listing of the year also marks the first corporate bond listing in the new PDEx fixed income trading system, Bloomberg FIQ trading, which was just launched on 29 October 2018.

PDEx President and COO Antonino Nakpil said: “It is fitting that these “firsts” are achieved by Metrobank, the first bank to list its securities in the organized market back in May 2009, the first bank to issue and list LTNCTDs under the clarified fiscal framework in 2014. And with this issue, it is first again to utilize the guidelines and “break in” the listing process in the new trading system.” He added that, “The path to this milestone in the local debt market was paved by the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission’s (SEC) joint and proactive efforts to facilitate banks’ access to funding through bond issuances, creating a positive nexus between banking reform and capital market development.”

Metrobank Senior Executive Vice President and Financial Markets Sector Head Fernand Antonio A. Tansingco was pleased to have set a roadmap for other banks follow. He also mentioned that this bank-issued bond is the first public instrument to be priced using the new benchmark curve, BVAL. “We were able to price this bond at the tight end of the spread guidance and have started a benchmark for bank credit. We got almost ten times of orders from our initial announcement,” remarked Mr. Tansingco.

SEC Commissioner Ephyro Luis B. Amatong graced the event and expressed his delight in the success of the pioneer issuance and listing of this instrument, especially as measured by the final size of the issue offered, PHP 10.0 Billion, and the fact that in order to accommodate investor demand, the final size was a fivefold increase from the original offering.

“We look forward to Metrobank’s follow on issuances as they move towards fulfilling their PhP 100 Billion of planned borrowing. Today’s issuance of bank bonds does not simply represent a new funding instrument for banks. Rather, it is one aspect of a broader, domestic capital market reform effort which involves close cooperation among the SEC, BSP, and the Bureau of the Treasury,” said Commissioner Amatong. He stressed that bank bonds will serve an important need in the current regulatory and interest rate environment as bonds provide longer term cost of funding certainty, which is valuable when rates are on the rise. He further expressed his hope that the success of this pioneer issue would spur other banks to utilize this new avenue of funding.

The listing of its bond brought Metrobank’s total face amount of instruments listed on PDEx to PhP 45.33 Billion, the total face amount of new bonds listed on PDEx for 2018 at PhP 184.39 Billion, and the total face amount of corporate bonds listed in PDEx to PhP 976.27 Billion, an increase of 23.18% over the 2017 year-end level of PHP 792.53 Billion.

Also in attendance were Metrobank Officers, Asset Liability Management Division Head Edgar Alan P. Guerrero, Markets Sales Group Head Angelica S. Reyes, Treasury Group Head Anthony Paul C. Yap, and the Issue Underwriters including Standard Chartered Bank Chief Executive Officer Lynette V. Ortiz and First Metro Investment Corporation Institutional Sales Department Head Peter Anthony D. Bautista. #

PDS Press Release – MBTC Bonds Due 2020 FINAL

Alsons Consolidated Resources, Inc. Debuts in the PDEx Organized Secondary Market

ACR Photo Release

26 October 2018, Makati Philippines – Alsons Consolidated Resources, Inc. (ACR) joined the ranks of the PDEx Issuer Community, listing its maiden issuance of PhP 100 Million Commercial Paper on the PDEx bourse. The offering forms part of Alson’s PhP 2.5 Billion Commercial Paper Program approved by the Securities and Exchange Commission under the Shelf-Registration Program.

This 22nd listing for the year marks the 140th listing since the organized secondary debt market opened in 2008. This brings the year-to-date total of new listings to P174.39 Billion, increasing the total volume of listed corporate debt to PhP 966.27 Billion.

For PDEx President and COO Antonino Nakpil, Alson’s listing is timely given the development of green financing in the country. “Today, we have Mindanao’s first independent power producer and a firm that is notably moving into the renewable energy sector. This certainly puts ACR and its projects on the radar screen of green-focused investment funds, an area of funding activity that has been growing significantly over the past two years,” Mr. Nakpil said.

Alsons Executive Vice President Tirso Santillan, Jr. remarked: “We’re looking to add up to 145 megawatts of renewable energy from the eight run-of-river hydro power facilities that we will be developing in various locations in Mindanao and Negros Occidental. This facility will give us the ability to bridge the financial requirements of our projects under development.”

In attendance were Alsons Directors Conrad Alcantara and Nicasio Alcantara, Alsons Chief Finance Officer Robert Yenko, and the Issue’s Sole Issue Manager, Lead Arranger and Underwriter – Multinational Investment Bancorporation President Marilou Cristobal.#

PDS Press Release – ACR Commercial Paper Program FINAL