SEC confident of market recovery
Published Apr 12, 2020 12:00 am
By JAMES A. LOYOLA
The Securities and Exchange Commission (SEC) is optimistic that the Philippine capital market will recover because companies continue to receive strong support from the investing public amid the new coronavirus pandemic.
It noted that, the recent decline and the lingering uncertainty in the stock market under The Philippine Stock Exchange, Inc. (PSE) and the bond market under the Philippine Dealing & Exchange Corp. (PDEx) have not kept keep companies from tapping the capital market.
Aboitiz Power Corporation, for one, intends to proceed with the issuance of the fourth tranche of its ₱30 billion worth of fixed-rate bonds under shelf registration with the SEC.
The power generation and distribution company looks to issue ₱9.55 billion worth of fixed-rate retail bonds within the quarter or the next.
Other companies have recently completed their public offerings, as the country entered a state of public health emergency – and eventually a national emergency – with the confirmation of the first local transmission of COVID-19 on March 7.
Bank of the Philippine Islands on March 27 announced the issuance of ₱33.9 billion worth of bonds, with a tenor of 1.5 years and an interest rate of 4.05 percent per annum. Strong investor demand allowed the bank to upsize its ₱5 billion base offer more than six times and end the offer period 11 days ahead of the March 17 schedule.
SM Prime Holdings, Inc. also issued bonds worth ₱15 billion on March 25. The public offering, which ran from March 2 to 13, comprised five- and seven-year bonds paying 4.8643 percent and 5.0583 percent in annual interest, respectively.
Meanwhile, a bond offering by Rizal Commercial Banking Corp. was oversubscribed twice after running for only three days and closing ahead of its March 27 schedule.
The bank raised ₱7.05 billion from the issuance and listing of two-year bonds carrying a coupon of 4.848 percent per annum last April 7. The bonds form part of the bank’s ₱100 billion bond and commercial paper program.
“We are optimistic that the Philippine capital market will make a strong recovery from the impact of the COVID-19 pandemic,” SEC Chairperson Emilio B. Aquino said.
He added that, “We take the success of recent fundraising activities as one indication of the investing public’s continued confidence in the strength and resilience of our corporate sector, capital market and economy as a whole, especially with the reinforcements coming from the government.”
It noted that, the recent decline and the lingering uncertainty in the stock market under The Philippine Stock Exchange, Inc. (PSE) and the bond market under the Philippine Dealing & Exchange Corp. (PDEx) have not kept keep companies from tapping the capital market.
Aboitiz Power Corporation, for one, intends to proceed with the issuance of the fourth tranche of its ₱30 billion worth of fixed-rate bonds under shelf registration with the SEC.
The power generation and distribution company looks to issue ₱9.55 billion worth of fixed-rate retail bonds within the quarter or the next.
Other companies have recently completed their public offerings, as the country entered a state of public health emergency – and eventually a national emergency – with the confirmation of the first local transmission of COVID-19 on March 7.
Bank of the Philippine Islands on March 27 announced the issuance of ₱33.9 billion worth of bonds, with a tenor of 1.5 years and an interest rate of 4.05 percent per annum. Strong investor demand allowed the bank to upsize its ₱5 billion base offer more than six times and end the offer period 11 days ahead of the March 17 schedule.
SM Prime Holdings, Inc. also issued bonds worth ₱15 billion on March 25. The public offering, which ran from March 2 to 13, comprised five- and seven-year bonds paying 4.8643 percent and 5.0583 percent in annual interest, respectively.
Meanwhile, a bond offering by Rizal Commercial Banking Corp. was oversubscribed twice after running for only three days and closing ahead of its March 27 schedule.
The bank raised ₱7.05 billion from the issuance and listing of two-year bonds carrying a coupon of 4.848 percent per annum last April 7. The bonds form part of the bank’s ₱100 billion bond and commercial paper program.
“We are optimistic that the Philippine capital market will make a strong recovery from the impact of the COVID-19 pandemic,” SEC Chairperson Emilio B. Aquino said.
He added that, “We take the success of recent fundraising activities as one indication of the investing public’s continued confidence in the strength and resilience of our corporate sector, capital market and economy as a whole, especially with the reinforcements coming from the government.”