Philippine companies seen raising up to $8.25B via bonds in 2023

MANILA – Philippine companies are expected to generate up to P450 billion ($8.25 billion) through bond issuance this year to fund expansion and repay debt, the country’s bond market operator said on Monday.

“Domestic investment liquidity is alive and well,” Antonino Nakpil, president and chief executive officer of the Philippine Dealing & Exchange Corp (PDEX), told reporters.

PDEX sees companies raising P300 to P450 billion via bonds this year, he said, adding that big corporations and banks would be active in the fixed income market.

Companies tapped the bond market to raise a record P508 billion ($9.3 billion) last year, more than double the P213 billion in 2021, PDEX data showed.

Despite an expected slowdown in the economy this year because of inflation and higher interest rates, Philippine companies are selectively pursuing expansion in sectors that will benefit from the country’s economic reopening.

As of the end of 2022, PDEX had P1.38 trillion in tradable corporate debt instruments issued by 53 companies comprised of 196 types of securities. — Reuters