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Corporate bond issuance may hit $3.8B in 2019

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PHILIPPINE COMPANIES are expected to raise around P 200 billion ($3.8 billion) through bond issues next year to fund expansion plans and debt payments, the country’s bond market operator said on Thursday.

Corporate bond listings in the PDS Group’s fixed income trading platform jumped nearly a quarter to a record-high P256.4 billion this year, led by banks that tapped the bond market for fresh capital.

“If you foresee growth in the economy, then you will have the demand for funding and expansion,” Ma. Theresa Ravalo, officer-in-charge of the PDS Group, which operates the country’s bond trading platform, said in an interview.

Banks, property and infrastructure firms could access more funds from the bond market next year, she said, adding that next year’s forecast could be revisited in the second half.

President Rodrigo R. Duterte has pledged to usher in a “golden age of infrastructure” through a six-year, $180-billion overhaul of ageing airports, roads, railways and bridges.

To date, there are 50 companies that have a combined 164 bond issues worth P1.05 trillion in the Philippines’ fixed income trading platform. — Reuters