Enhancing Philippine business and the economy

IHAP Awards 2018 recognizes winners

By Romsanne R. Ortiguero

Established in 1974, the Investment House Association of the Philippines (IHAP) has since promoted a better understanding of the role and functions of investment houses. Part of its objectives is to enhance their contribution to the growth of Philippine business and the economy particularly through the development of the capital market.

With the Philippines as one of the emerging markets, now more than ever, these investment houses play a significant role in advancing the country’s economic growth by continuing to provide a wide range of financial and advisory services. These include issue management and underwriting of public offering of debt and equity securities, loan syndication and financial packaging, and advisory for corporate mergers, acquisitions and restructuring, among others.

Since its founding, the nonstock, nonprofit organization’s members and fellows have grown to more than 30 already. Part of IHAP’s growth was also marked by the staging of the IHAP Awards since 2016, which aims to promote excellence and global best practices by recognizing the most noteworthy investment banking transactions and investment houses in the Philippines.

Now on its third year in collaboration with professional auditing firm KPMG R.G. Manabat & Co. (KPMG RGM&Co.) as the official tabulator, the awards throughout the years saw a remarkable increase in the number of nominations as well as investment houses that participated.

“This year, there were 47 entries from 13 investment houses. That’s a 34% jump in the number of entries and an 86% increase in the number of participants. I’d like to think that the marked improvement can be attributed to the increasingly more active industry, a vibrant capital market, and/or a positive economic outlook — any of which bode well for investment banks, business in general, and the country as a whole,” IHAP President and RCBC Capital Corp. President and Chief Executive Officer Jose Luis F. Gomez said during the 3^rd IHAP Awarding ceremony held at Grand Hyatt Manila in Taguig City last April 13.

According to KPMG RGM&Co.’s Advisory Partner Mike H. Guarin, it was the Fixed Income Deal category that grew the most number in terms of nominations.

Meanwhile, this year’s Board of Judges include Securities and Exchange Commission (SEC) Commissioner Atty. Ephyro Luis. B. Amatong; Philippine Stock Exchange, Inc. (PSE) Senior Vice-President and Chief Operating Officer Roel A. Refran, Philippine Dealing System Holdings Corp. (PDS) President and Chief Executive Officer Cesar B. Crisol, Financial Executives Institute of the Philippines (FINEX) President Ma. Victoria C. Españo, Shareholders’ Association of the Philippines (SharePHIL) President Atty. Francisco Ed. Lim, and Fund Managers Association of the Philippines (FMAP) President Deanno J. Basas.

Mr. Gomez noted that the awards given serve to highlight key transactions and the investment houses that were instrumental — if not critical — in bringing about these noteworthy transactions — noteworthy for their innovativeness, social impact, and their adherence to strict codes of governance, among other things.

The Best Advisory House, Best Equity House, Best Project Finance House, and Best Investment House of the Year were all given to BDO Capital and Investment Corporation.

On the other hand, Del Monte Pacific Limited US$ Denominated Preference Shares (BDO Capital and Investment Corporation/China Bank Capital Corporation/PNB Capital and Investment Corporation/RCBC Capital Corporation) got the Best Equity Deal award.

The Best Fixed Income Deal award was conferred to AYC Finance Ltd. US$400 million Guaranteed Undated Notes (HSBC/BPI Capital Corporation/China Bank Capital Corporation).

The similar award was also given to Republic of the Philippines – Retail Treasury Bonds 20^th Tranche (Development Bank of the Philippines/Land Bank of the Philippines/BDO Capital and Investment Corporation/BPI Capital Corporation/China Bank Capital Corporation/First Metro Investment Corporation/SB Capital Investment Corporation).

Republic of the Philippines – Retail Treasury Bonds 20^th Tranche likewise won the Deal of the Year award.

BDO Capital and Investment Corporation and China Bank Capital Corporation both received the Best Fixed Income House award; while Divestment Petroliam Nasional Berhad (Maybank ATR Kim Eng Capital Partners, Inc.) got the Best Advisory Deal award.

Lastly, the Star Energy Geothermal (Salak-Darajat) B.V. US$1.25 billion Term Loan (BPI Capital Corporation/RCBC Capital Corporation) bagged the Best Project Finance Deal of the Year.

“We hope that these awards would serve to inspire not only investment houses but also our collateral partners in business such as external legal counsels, auditors and consultants, technical advisers, etc. to continue to promote more of these landmark transactions that help to enhance and develop our capital markets and to provide necessary funding for worthwhile endeavors that ultimately serve to improve the welfare of our people,” Mr. Gomez shared.

For his part, Mr. Guarin said: “KPMG and IHAP share a common vision: to uphold excellence in our profession and contribute to the attainment of our nation’s economic goals. Our joint collaboration in this awards has led to a solid alliance built within genuine passion to enhance our country’s competitiveness.”

Moving forward, Mr. Guarin also said that more improvements in the awards are to be expected in the years to come as they try to accommodate and make sure that it is truly representative of the entire capital market ecosystem.