Bond exchange sees banner year

The Philippine Dealing and Exchange Corp. (PDEx), the country’s trading platform for fixed income securities, said it expects 2017 to be another banner year as more companies raise funds through the bond market.

Cesar Crisol, president and CEO of the PDS Group, said the amount of securities to be listed this year at the fixed income market is seen eclipsing the all-time high of P191.85 billion recorded in 2014.

“We could probably hit one of the higher levels. Hopefully, we can break our 2014 level of P190 billion,” Crisol said on the sidelines of the maiden listing of Ayala-led Bank of the Philippine Islands (BPI). Data showed total volume of listings for 2017 has amounted to P187.43 billion.

Philippine banks alone led by BPI, BDO Unibank and China Banking Corp. of retail and banking magnate Henry Sy, the Metrobank

From B1 Group and Philippine Savings Bank of taipan George SK Ty, Gotianun-led East West Banking Corp., Philippine National Bank of tobacco and airline magnate Lucio Tan, and Robinsons Bank of tycoon John Gokongwei have raised over P90 billion from the issuance of longterm negotiable certificates of deposits (LTNCDs) .

Crisol pointed out there are three more companies, including a power and holding company, planning to issue bonds within the year.

“We still have a couple more by the end of the year. They have already planned the issuance and we’re just waiting for them to get to market,” he said.

The total volume of listings jumped 27 percent to P136.46 billion last year from P107.4 billion in 2015.

To date, there are 46 issuers and 126 securities worth P775.15 billion listed in the PDEx.

For 2018, Crisol said the performance of the fixed income market would depend also on external developments including the normalization of interest rats being undertaken by the US Federal Reserve.

“For next year, we’ll see on how the global developments pan out especially the perceived increase in Fed rates. After that probably markets will digest that before putting up firmer plans,” he added.

The US Fed is seen raising interest rates anew next month, its third for the year after March and June.

On the other, he explained the Build Build Build program of the government could boost the fixed income market as more companies are seen tapping the debt market for funds.