02 June 2022, Makati, Philippines — Union Bank of the Philippines (UBP) has listed PHP 11 Billion for its inaugural digital peso bond issuance — the country’s first of its kind on the Philippine Dealing and Exchange Corp. (PDEx). Equally, the event also celebrated the launch of the Proof of Concept (POC) PDTC Digital Registry and PDTC Digital Depository with the UBP Digital Bond as the pioneer client.

This issuance was made possible through the close coordination and joint effort of PDTC and #STACS (hash+STACS), a Singapore-based fintech firm as its technology partner.

The bond was priced at 3.25% per annum for a tenor year of 1.5 years, following an oversubscription from a minimum size of PHP 1 Billion and was issued from UBP’s existing PHP 39 Billion bonds program.

PDEx President and Chief Executive Officer Antonino A. Nakpil opened the listing ceremony and expressed his gratitude to be part of this milestone. He said: “It is no surprise that Union Bank of the Philippines is the pilot issuer of this 1.5-Year digital bond, and for this POC live test originally targeting PHP 1 Billion among 200 bondholders, Team UBP and its underwriters went “all in” to issue and list PHP 11 Billion worth of bonds to 893 bondholders. Now we trust that such commitment removes any doubt that Union Bank is indeed the proverbial “tip of the digital spear”.”

“As one of the first, if not the first CSD in Asia to launch a live DL-backed Digital Registry and Digital Depository, it is our hope that this digital platform is a seed that blooms into a thousand other apps delivering innovative self-service technologies to empower each capital market stakeholder, securely, inclusively, sustainably, a worthy aspiration for a digital market infrastructure.”, further added Mr. Nakpil.

SEC Commissioner Hon. Emilio B. Aquino also delivered a special message. In his message, he remarked: “As strong adherence of fintech, we at SEC find digitalization as a key for the development and efficiency of our financial markets moving forward. I hope for the success of this new digitized system of the PDTC and advocate for the utilization of appropriate technology to improve our systems that will ensure protection of the investors and the integrity of our capital market.”

The listing ceremony was also delighted with the presence of SEC Commissioner Kelvin Lester K. Lee. He stated: “Today marks a historic event in our Philippine capital markets. We shall witness the first ever live bond issuance using the PDTC Digital Registry Proof of Concept. Through this POC which shall also cover secondary market transactions, we will get to evaluate the viability of the technology to support issuance and the servicing of a Philippine Digital Bond. Further, we hope to learn from this experience and determine efficiencies to enable a harmonious technological framework for these bonds.”

UBP SEVP & Treasurer Mr. Jose Emmanuel U. Hilado also showed his appreciation to investors who made this successful issuance possible. “This pioneering issuance serves as another building block in Union Bank’s journey to embrace digitization and positive disruption in the industry.”

“I am confident that this will be recognized globally as a game changing digital initiative in the field of finance.” added Mr. Hilado.

This 13th admission for 2022 brings the year-to-date total of new listings and enrollments to PHP 242.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.34 Trillion issued by 53 companies, comprised of 190 securities.

PDEx Press Release_UBP Series E Bonds

PHILIPPINES, 02 June 2022 — The Philippine Dealing System Holdings Corp. (‘PDS Group’) today announced the launch of a fully digitally native bond, issued on a distributed ledger technology (‘DLT’) network powered by Hashstacs Pte Ltd (‘STACS’), a Singapore-headquartered FinTech firm. The digital bond was issued by the Union Bank of the Philippines (‘UnionBank’) for PHP 11.00 billion or approximately USD 210 million and priced at 3.25% p.a. for a tenor of 1.5 years. With more than 895 bondholders for this launch, PDS Group becomes the first Asian national market infrastructure to launch a fully live DLT-based bond.

PDS Group subsidiary Phil. Depository & Trust Corp. (‘PDTC’), the national Central Securities Depository for debt and equities, and STACS embarked on the project, a proof of concept to explore, use, and determine efficiencies of DLT for PDTC’s fixed income registry and depository operations, with the aim of deploying a viable DLT-powered PDTC Digital Registry & PDTC Digital Depository system to support issuances and servicing (transfers and corporate actions) of a Philippine Digital bond and culminating in the live issuance of a digitally native bond.

The main benefits and features of DLT that underpin the digital bond include immutability, system resilience, and multiple redundancy. The DLT network has multiple nodes, which instantaneously record all transactions, thereby backing-up each other while ensuring immutability.

Through the partnership, PDTC and STACS were able to effectively model and optimize the workflows involved, unlocking new efficiencies and strategic opportunities. The new digital processes remain completely seamless for the underwriters, issuers, and bondholders with a paperless submission of issuing documents for listing and registry via the PDS Group’s e-Securities Issue Portal (‘e-SIP’) to create securities onto the PDTC Digital Registry, powered by STACS.

Importantly, these benefits were achieved, while being completely compliant with the existing Philippine securities laws and regulations, as well as the rules of the Phil. Dealing & Exchange Corp. (‘PDEx’) another PDS Group subsidiary that is a Philippine SEC-licensed Fixed Income Market Operator. The UnionBank issued Digital Bond is listed on the PDEx FI Market and secondary market transactions will occur on existing market infrastructure for trading to clearing and a newly built link from the clearing system to the PDTC Digital Depository to complete Delivery Versus Payment settlement. The project’s feature of interoperability was planned to allow PDEx Trading Participants and PDTC Depository Participants to seamlessly reap the benefits of the new digital market infrastructure while being supported by traditional market infrastructure and compliant with the regulatory framework.

Ramon Monzon, CEO at of the Group’s parent company, PDS Holdings, said: “The digital economy is quickly expanding across the globe, and it promises to be a significant engine for innovation, competitiveness, and economic growth. To be part of the digital economy, financial market infrastructures must “digitalize”, and this has been the impetus for the PDS Group’s digitalization initiatives. In engaging in this POC, the focus on seamless inter-operability of digital with traditional infrastructure and the digital services’ compliance with existing securities laws and regulations foster an evolutionary approach. In that regard, we are pleased to have a like-minded partner in STACS, also looking to use technology to fulfil a vision of corporate issuers and client investors mutually benefiting from the convenience of digitalized funding and investment processes.”

As a leading fintech firm focused on environmental, social, and governance (‘ESG’) fintech, in partnership with the Monetary Authority of Singapore’s (‘MAS’) Project Greenprint, STACS contributed its domain expertise in DLT to power PDS Group’s platform. Earlier in May (18 May), STACS officially launched its flagship blockchain-powered platform, ESGpedia, which powers the ESG Registry of Project Greenprint. With over 20 institutional partners from both the financial and non-financial sectors, ESGpedia provides holistic and forward-looking ESG data on a common, standardized registry and as of today, hosts more than 170,500 certificates.

Benjamin Soh, Managing Director at STACS, said: “We are thrilled to be partnering with the Philippines PDS Group and powering the first national market infrastructure in Asia to launch a fully live DLT-based bond, via our DLT expertise. Technology like DLT provides immutability and ease of access by different users, allowing the benefits to be reaped across borders on an international scale, by PDS and its wider ecosystem of financial institution partners, creating vast value and opportunities for the industry. DLT is also a key enabler of sustainable business models and related finance, and we hope to further enhance PDS Group’s platform.”

Future phases of the partnership include further engagement with the industry, in view of possibly scaling up PDS Group’s platform with more features, including ESG management via holistic ESG data as well as smart contracts to automate the lifecycle management of sustainable financial products.

PDS x STACS Press Release

26 May 2022, Makati, Philippines — Ending the first half of 2022, Ayala Corporation (AC) returned to the Philippine Dealing & Exchange Corp. for the listing of its PHP 15 Billion 3-year, 5-year, and 7-year bonds. The series C, D, and E bonds carry a coupon rate of 4.4542%, 5.6239%, and 6.1351%, per annum, respectively, to be paid quarterly.

Today’s virtual listing ceremony was opened by PDEx President and CEO Antonino A. Nakpil, recognizing the issuance as AC’s largest by volume thus far. “The size of the issuance has not fazed investors whose demand for AC instruments triggered the oversubscription from the initial issue size of PHP 10 Billion.”, said Mr. Nakpil.

“The amounts raised by AC and its peers thus far have been larger than ever and belie confidence that underpinning projections will be met, a most positive signal for the country.”, added Mr. Nakpil.

SEC Commissioner Hon. Kelvin Lester K. Lee also shared a few words. He said: “With the current uncertainties that affect the global markets and our local market such as the persisting conflict in Europe, global growth deceleration and rising inflation, I commend Ayala Corporation for taking this opportunity to obtain financing through our capital markets.”

Next to deliver a message was Ayala Corporation Vice Chairman, President & CEO Fernando Zobel de Ayala. “Amid a volatile market environment, the issuance was met with high investor demand that garnered over 120 billion pesos at clearing, deeming this as one of the largest corporate books with investments from key local institutions. We are honored to have received positive investor response to this issuance that supports our liability management in a rising interest rate environment. It also validates the market’s confidence in Ayala’s credit quality, while solidifying our balance sheet under volatile markets,” remarked Mr. Zobel de Ayala.

AC Chief Finance Officer Alberto M. de Larrazabal likewise shared some words on behalf of the Issuer: “I believe what we are saying here is possibly a formula that is needed to ensure the continuation of programs to get the economy back on a growth trajectory: the private sector working with government institutions in the process of mobilizing capital and applying it to investments that will provide for the growth of the economy.”

This 12^th admission for 2022 brings the year-to-date total of new listings and enrollments to PHP 231.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.33 Trillion issued by 53 companies, comprised of 189 securities.

PDEx Press Release_AC Fixed Rate Bonds

05 May 2022, Makati, Philippines — PDS Annual Awards special citation winner, Ayala Land, Inc. (ALI) returned to PDEx to list its PHP 12 Billion Fixed Rate Bonds. Today’s listing marks ALI’s third time using the e-Securities Issue Portal (e-SIP) since they pioneered the launch one (1) year ago. ALI was notably awarded in the PDS Annual Awards held last 25 March 2022 for being the first issuer to use e-SIP for its pre-listing and registry onboarding activities. ALI demonstrated its firm support for PDS Group’s digitalization initiative by actively participating from end-to-end beta tests all the way to again becoming a Pilot Corporate Bond Issuer to list its Fixed Rate bonds using e-SIP.

PDEx President and CEO Antonino A. Nakpil in his welcome remarks was pleased to report a great ongoing record. He said: “We happily note that ALI’s PHP 12 Billion listing today marks the point at which 2022’s level of new listings now at PHP 216.46 Billion now surpasses 2021’s total annual level of PHP 213.45 Billion.”

“Our Issuers’ demand for debt capital has been more than filled by the domestic investor segment’s supply of investible funds that have led to each of the 11 listings to date being oversubscribed at an average of 3.27 times their original amounts.  And the domestic investors, retail and professional, have also been flexing in secondary market activity this year where up to 70% of total traded volume is attributed to the investor segment. These are indeed more positive metrics with which to track PDS’s original mission, the development of the stable investor base to support corporate issuers.”, further added Mr. Nakpil.

SEC Commissioner Hon. Kelvin Lester K. Lee also graced today’s listing ceremony and delivered a special message. In his message, he remarked: “Since 1991, the year Ayala Land became publicly listed, it has weathered numerous challenges, from the lingering effects of the Gulf War and the eruption of Mt. Pinatubo in that same year, to the 1997 Asian Financial Crisis, the 2008 Global Financial Crisis, and of course recently, with the COVID-19 Pandemic. Despite all these, Ayala Land continues to show its resiliency and cement its impact in our communities. With Ayala Land’s stellar track record, the Commission is optimistic that the additional funding from this offering would add value to and increase enthusiasm in our capital markets, and of course, support Ayala Land in attaining its lofty vision of uplifting the lives of our countrymen.”

Another message was delivered during the ceremony by ALI’s Deputy Treasurer, Jose Emilio B. Jamir. “This P12 billion listing is the biggest bond issuance of Ayala Land in the past eight years and the second-largest issuance in our history. This bond offering was well-received by the market, having gathered PHP 60 Billion in orders or 5x the issue size. This solid market reception led to pricing at the tight end of the spread range, manifesting the retail and institutional investors’ unwavering trust and confidence in Ayala Land’s credit and resilience.”, remarked Mr. Jamir.

Similar to this previous speeches, Mr. Jamir once again referenced his passion for biking into his message to share the value of line selection. He mentioned: The best riders study the terrain, seek smooth and fast momentum lines, and find ways to maintain these on the trail. What is also crucial in line selection is to have the skill to look ahead. For Ayala Land, we have employed this line selection strategy in our fundraising activities. We have established the plan for the year to ensure that we overcome market obstacles and smoothly reach our path to recovery. As you know, we actively pursued the early redemption of our high-cost borrowings in the past two years and replaced it with lower fixed interest rates in anticipation of this rising interest rate environment.”

Mr. Jamir also gave us a sneak-peak into ALI’s plans. “To secure our path further, we are embarking on another bond transaction that we will announce and file with the SEC in the coming days.”, said Mr. Jamir as he ended his message.

Since ALI pioneered e-SIP’s launch a year ago, a total of nine (9) other issuers have followed suit in 2021 alone and benefited from the digitalization processes, reduction of storage costs, and have saved paper. By the end of 2021, e-SIP processed 19,864 client accounts and saved the equivalent of 79,000 sheets of paper. The PDS Group continually aims to have more issuers benefit from the utilization of e-SIP

This 11^th admission for 2022 brings the year-to-date total of new listings and enrollments to PHP 216.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.36 Trillion issued by 53 companies, comprised of 191 securities.

PDEx Press Release_ALI Fixed Rate Bonds

04 May 2022, Makati, Philippines — State-owned Development Bank of the Philippines (DBP) returned to the Philippine Dealing & Exchange Corp. for the enrollment of its PHP 12 Billion 2.5-Year Fixed Rate bonds which carry an interest rate of 4.05%.

Despite the fact that enrollments are limited to only Qualified Investors as bondholders, the issuance was still oversubscribed from the original size of PHP 3 Billion, a testament to the confidence investors have towards DBP.

PDEx President and Chief Executive Officer Antonino A. Nakpil happily welcomed DBP back for today’s enrollment, the last one taking place in 2020.

“DBP was the second bank to issue a Sustainability Bond under its SEC-compliant and ASEAN+3 compliant Sustainability Principles. This was a natural fit given its many developmental initiatives that would easily qualify under the use of proceeds terms of these so-called thematic programs. With the continuous growth of the pools of professionally managed funds focused on Socially Responsible Investment globally, we expect this wave to hit the domestic QIB community and provide even more liquidity to DBP’s future enrollments whether green, social, sustainable, or newer themes.”, remarked Mr. Nakpil

Mr. Nakpil also acknowledged DBP for its outstanding performance in 2021. He said: “DBP’s activity in the fixed income markets extends beyond being a bond issuer, in fact, last month it was also recognized as one of the Top 5 Dealing Participants for 2021 during the Annual PDS Awards.”

DBP President and Chief Executive Officer Emmanuel G. Herbosa said the bond issuance is in line with the bank’s continuing efforts to advance sustainable growth through responsive development financing interventions. “We at DBP are greatly pleased to share with you the news that the bond issue was again warmly and widely received by the market. With this, I am glad to say that the Bank has further reinforced its wherewithal for making tailored-fit development financing solutions more responsive and accessible to our stakeholders,” announced Mr. Herbosa.

Mr. Herbosa added: “With this bond initiative we vow to ensure that we shall preserve, sustain, and take care of the Bank’s value up until – and especially even after – this ongoing public health crisis blows over. DBP will always remain committed to provide top-notch financial and banking services to all our stakeholders, not losing sight of our ever-hopeful vision to usher in growth for Filipinos nationwide.”

DBP is the fifth-largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.

This 10^th admission for 2022 brings the year-to-date total of new listings and enrollments to PHP 204.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.35 Trillion issued by 53 companies, comprised of 190 securities.

22 April 2022, Makati, Philippines — SM Prime Holdings Inc. (SMPH) returned to the local debt market for the listing of its PHP 30 Billion series P, Q, and R five (5), seven (7), and ten (10) year Fixed Rate Bonds. The bonds carry coupon rates of 5.6141%, 6.1175%, and 6.5432%, respectively, to be paid semi-annually.

Today’s issuance and listing marks the 3rd listing ceremony for the SM Group, listing a total amount of PHP 97.7 Billion for 2022 thus far. This is the 4th tranche of SMPH’s PHP 100 Billion bond shelf registration program approved by the SEC.
PDEx President and CEO Antonino A. Nakpil opened the ceremony through his welcome remarks. “It may not be a surprise for SMPH but the investible liquidity of domestic investors has been constant and consistently present. This issue is no exception and from its base offer of PHP 15 billion, we understand the total tenders for your issues amounted to a shade under PHP 62 Billion, above 4 times oversubscribed” said Mr. Nakpil as he congratulated SMPH for yet another oversubscription.

SMPH Chief Finance Officer John Nai Peng C. Ong also took the opportunity to share a few words. He said: “Since the onset of the pandemic in March 2020, SM Prime has been active in helping its public and private partners to rise above this unprecedented crisis. The results that we achieved in 2021 gave us a lot of encouragement to pursue our business recovery plan while continuously providing services to our customers, shareholders, public and private partners, communities and employees.”

This 9th listing for 2022 brings the year-to-date total of new listings to PHP 192.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.37 Trillion issued by 54 companies, comprising of 194 securities.

PDEx Press Release_SMPH Fixed Rate Bonds

08 April 2022, Makati, Philippines — Converge Information and Communications Technology Solutions, Inc. (Converge ICT), one of the country’s top broadband and wi-fi providers, joined the PDEx Issuer Community with the entry of its maiden listing of PHP 10 Billion Fixed Rate Bonds Due 2027. CNVRG notably entered the fixed income market on a high note having been oversubscribed from the initial offer size of PHP 5 Billion due to strong investor demand. This maiden issuance has a coupon rate of 5.5942% per annum, to be paid quarterly.

As PDEx President and CEO Antonino A. Nakpil congratulated and welcomed Converge ICT, he also shared his insights on the issuer-investor relationship. He said: “This is a fantastic start to your relationship with bond investors, whom we trust you will find can be very sticky in their preferred issuers. Just provide them with investible instruments with consistent returns and each time you return to the debt capital market, they will have your back. We trust that you, like many of our issuers will be able nurture your investors to the point where you can confidently build in public debt issuances into your funding strategy. This mutually beneficial interlude between issuers and investors is something that we never get tired of witnessing and it provides a re-energizing excitement to every maiden listing.”

The virtual listing ceremony was also graced by the presence of SEC Commissioners namely Hon. Kelvin Lester K. Lee, Hon. Mcjill Bryant T. Fernandez, and Hon. Karlo S. Bello. In a special message, Hon. Lee said: “This year, we are seeing offices adapt and still maintain a flexible work arrangement in holding work-from-home schedules while the others are coming back to work onsite. In both work arrangements, a reliable broadband service provider remains critical and crucial. We also observe that most services are now rendered online.”

“With the proceeds from the company’s bond offering, we are hopeful that Converge will continue to innovate and deliver quality services not only to those in the metro but also to those in the far-flung areas of the country. Hopefully, this will contribute to increased broadband penetration to make the Philippines at par with if not better than our neighboring countries.”, added Hon. Lee.

Converge ICT CEO Mr. Dennis Anthony H. Uy then proceeded to deliver his message. Mr. Uy was grateful for the oversubscription of the issuance and assured investors and clients of their continued service. He said: “The strong interest we have seen from investors is encouraging for us. This gives us a renewed hunger and passion to pursue our goal of seeing a more connected and fiber-powered Philippines. Even as we explore different technologies to connect Filipinos – like satellite – our fiber technology is the foundation of our business. We will continue to invest in our digital infrastructure and reach out to the unserved and underserved.”

“Our goal is to reach as many customers in all areas possible, no matter how small the towns or purok, kahit nasa bundok o dagat, we will reach them.”, emphasized Mr. Uy.
This 8th listing for 2022 brings the year-to-date total of new listings to PHP 162.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.36 Trillion issued by 54 companies, comprising of 193 securities.

PDEx Press Release_CNVRG Fixed Rate Bonds

22 March 2022, Makati, Philippines — Aboitiz Power Corporation (AP) returned to the Philippine Dealing & Exchange Corp. for their first issuance for the year, the 3rd and final tranche of their PHP 30 Billion SEC shelf registration. AP’s PHP 10 Billion Series D and E bonds were pegged at 5.3066% and 5.7388%, per annum, respectively, to be paid quarterly.

PDEx President and CEO Antonino A. Nakpil took a little trip down memory lane in his welcome remarks during the listing ceremony on March 17, 2022 as he recalled the beginning of the government-mandated community quarantine. He said: “Today is auspiciously the second-year anniversary of the day when we were all introduced to the terms community quarantine, and when work-from-home transformed into a necessary component of business continuity.”

“But the lockdown chapter is about to end and APC did not miss a beat during this period of transformation and provided that key product to sustain the national business continuity, energy,” emphasized Mr. Nakpil.

AP CFO Liza Luv Montelibano highlighted AboitizPower’s sustainable energy transition journey in the next 10 years. “This deal allows AboitizPower to partially fund future renewable energy projects and the early redemption of the 2018 Series B Bonds. By participating in this deal, you have helped AboitizPower in achieving its goal of growing its Cleanergy portfolio by 3-fold to 4,600 MW. You have also helped the company to achieve a 50:50 balance between its renewable energy and thermal capacities over the next decade,” said Ms. Montelibano as she thanked the AP team, issue participants, and investors alike.

Ms. Montelibano also shared updates on AP’s renewable energy projects. “Last month, we held the groundbreaking of PV Sinag Power. This is a 94 megawatts peak plant located in barangay Cayanga, municipality of Bugallon, Pangasinan. On top of that, we have the 160 megawatts peak Laoag Solar project expected to be issued a notice to proceed this year. And finally, we have an additional 721 megawatts peak of solar and hydro projects under priority development. As you can see, with our ongoing and upcoming projects, mostly focused on renewable energy, we are well on our way to a sustainable energy transition.”

This 7th listing for 2022 brings the year-to-date total of new listings to PHP 152.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.41 Trillion issued by 53 companies, comprising of 196 securities.

PDEx Press Release_AP Bonds

04 March 2022, Makati, Philippines — San Miguel Corporation returned to the Philippine Dealing & Exchange Corp. with yet another “jumbo” issuance, for their PHP 30 Billion 5-year and 7-year fixed rate bonds. The Series J and K Fixed Rate bonds carry a coupon rate of 5.2704% and 5.8434%, respectively, to be paid quarterly.

Notably, this issuance is the 6th consecutive oversubscribed listing for PDEx in 2022.

PDEx President and CEO Antonino A. Nakpil in his welcome remarks said: “The main factor this year continues to be the significant presence and impact of investors, pouring liquidity in the primary market as evidenced by the consistent levels of oversubscription, and dominating in the secondary market as they account for 65% of total traded volumes thus far.”

Meanwhile, SMC Senior Vice President, Deputy Chief Finance Officer & Head of Treasury Joseph N. Pineda remarked: “While we continue to be challenged by the Covid-19 pandemic, we in San Miguel have never wavered in our commitments and we continue to remain focused on our goals in creating value for our investors, and at the same time helping boost our economic recovery through our growth generating projects.”

This 6th listing for 2022 brings the year-to-date total of new listings to PHP 142.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.40 Trillion issued by 53 companies, comprising of 194 securities.

PDEx Press Release_SMC Fixed Rate Bonds