Philippine Dealing and Exchange Corp. (PDEx) has surpassed its 2015 listing goal for fixed income securities and is hopeful of an improvement next year despite the prospect of higher interest rates.
With the year all but over, PDEx has recorded P107.39 billion in listings, exceeding a P100-billion target that was downwardly revised from P200 billion given market volatility.
PDEx President and Chief Operating Officer Cesar Crisol on Tuesday said this year had seen “big ones” issuing securities to fund projects, among them Sta Lucia Land. Inc. that on the same day listed P3 billion in fixed-rate peso bonds with a P2 billion overallotment option.
Asked if he expected higher listing values next year, Crisol replied: “I’m always hopeful. At least we hit over a hundred [billion pesos]this year because it really slowed down. And I’d like to say that 2014 was a record year with P190 billion [worth of issues and listings]. That was really a record year.”
“We’re hoping to at least equal this year [in 2016],” Crisol added.
Expected bond issuances and listings next year will mostly be aimed at funding public-private partnership (PPP) project commitments and other infrastructure projects, he said.
Two deferred offerings this year, from Double Dragon Properties Corp. and Ayala Land, Inc. will likely push through early next year, Crisol said.
Plans for 2016 would be firmer, he claimed, but added that issuers would be “assessing the situation” given the US Federal Reserve announcement of a “gradual” rate hike.
“People will still have to adjust to the Fed [announcement]. It is clear [rates are]gonna go up,” Crisol noted.
This year’s issuers, aside from Sta. Lucia, include SM Prime Holdings Inc.(P20 billion), Land Bank of the Philippines (P6 billion), Filinvest Land Inc. (P8 billion), Aboitiz Equity Ventures Inc. (P24 billion), 8990 Holdings Inc. (P9 billion), South Luzon Tollway Corp. (P7.3 billion), Ayala Land Inc. (P7 billion), Phoenix Petroleum Philippines Inc. (P1.49 billion), Robinsons Land Corp. (P12 billion), and BDO Unibank Inc. (P7.5 billion).
Since its establishment, PDEx has handled 100 corporate issues, valued at P539.54 billion, from 35 firms.