By Beatriz Marie D. Cruz, Reporter
TOYOTA FINANCIAL Services Philippines Corp. (TFSPH), the automotive financing and leasing arm of GT Capital Holdings, Inc., has launched its P2-billion maiden public bond offering to fund asset growth, diversify funding sources, and attract both institutional and individual investors.
The bonds will be issued in two series: two-year Series A Bonds due 2027 at a fixed rate of 5.7725% and three-year Series B Bonds due 2028 at 5.9418%, GT Capital said in a statement on Monday.
The offer period will run from Oct. 6 to 13.
GT Capital said the bonds are exempt securities under Section 9.1.2.1 of the 2015 Implementing Rules of the Securities Regulation Code, as the company is a licensed quasi-bank.
Any future offer or sale of the bonds will remain subject to Securities and Exchange Commission registration unless qualifying as exempt.
First Metro Investment Corp. and ING Bank N.V. Manila Branch are joint lead arrangers and bookrunners. They will also act as selling agents, alongside Metropolitan Bank & Trust Co. and BPI Capital Corp.
Analysts said the bond issuance is likely to support earnings and expand TFSPH’s balance sheet.
“We expect this high-grade fixed-rate bond offering to be well-received by the market,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
“TFSPH is a major domestic quasi-bank, so this fundraising will help expand their balance sheet to support their automotive financing business and push earnings growth.”
For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said: “This is an alternative source of funding other than bank loans that would help fund capex (capital expenditure) and opex (operating expenditure), in terms of new investments/expansion projects that would help grow its capacity and business in terms of higher sales and earnings.”
Philippine Rating Services Corp. (PhilRatings) assigned TFSPH an issuer credit rating of PRS Aaa with a stable outlook, citing strong shareholders, the Toyota brand’s solid franchise, good asset quality, and sustained revenue growth.
In the first quarter of fiscal year 2025, TFSPH reported total revenues of P3.9 billion, up 11% year on year.
Loan receivables rose 9% to P159.4 billion, while net interest income reached P1.6 billion.
TFSPH is 60% owned by Japan-based Toyota Financial Services Corp. and 40% by GT Capital.
GT Capital, a major listed Philippine conglomerate, operates across banking, automotive assembly, importation and dealership, property development, life and general insurance, and infrastructure. Its core subsidiaries include Metropolitan Bank & Trust Co., Toyota Motor Philippines Corp., Federal Land, Inc., AXA Philippines Life and General Insurance Corp., and Metro Pacific Investments Corp.
GT Capital reported a 39% increase in second-quarter attributable net income to P9.28 billion from P6.67 billion in the same period last year.
On Monday, GT Capital shares closed P14.50 lower, or 2.44%, at P579.50 apiece.
