Corporate issuance boost PHL, Asia bond market in Q1 — ADB 

(Update 2:41 p.m.) The Philippine bond market increased by over a tenth in the first quarter, driven by corporate and government borrowing, the Asian Development Bank (ADB) said in report Tuesday. 

 

Philippine bonds grew at an annual rate of 13.7 percent to $99 billion (P4.051 trillion) in the first quarter from $83 billion (P3.562 trillion) in the same period in 2012, according to Manila-based ADB's Asia Bond Monitor report. 

 

Corporate issuance increased by 19.8 percent in the first quarter year-on-year, while securities grew by  12.8 percent.  

 

“Financial institutions, including banks and investment companies, were the lead issuers of debt” in the period, read the report. 

 

Of the total, P3.519 trillion or 86.9 percent were accounted for by government debt papers, while the remainder was from corporate bonds. 

• San Miguel Brewery Inc.

• Ayala Corporation 

• BDO Unibank Inc. 

• SM Investments Corporation 

• Ayala Land Inc. 

• Philippine National Bank

• Manila Electric Company

• Philippine Long Distance Telephone Co. 

• Maynilad Water Services 

• SM Development Corporation 

• Filinvest Land Inc.

• Rizal Commercial Banking Corporation 

• Petron Corporation 

• JG Summit Holdings Inc. 

• Security Bank Corporation 

• First Metro Investment Corporation

• Robinsons Land Corporation

• Energy Development Corporation 

• MTD Manila Expressway Corporation 

• South Luzon Tollway Corporation

• Globe Telecom Inc. 

• Metropolitan Bank & Trust Co. 

• GT Capital Holdings Inc. 

• United Coconut Planters Bank 

• Allied Banking Corporation

• Megaworld Corporation

• Manila North Tollways Corporation

• Tanduay Distilleries Inc. 

• SM Prime Holdings, Inc. 

• Bank of the Philippine Islands

• China Banking Corporation.

In total, emerging East Asia’s local currency bond markets expanded 12.1 percent to $6.7 trillion in the first three months of the year year-on-year, boosted by double-digit growth in corporate bonds. 

 

The region’s corporate bond market expanded by 19.5 percent year-on-year, while government issues grew by 8.3 percent.

 

“We should see further growth in the bond markets given the region’s economies are continuing to expand and with foreign and domestic investors increasingly comfortable with Asian local currency debt,” Iwan J. Azis, head of ADB’s Office of Regional Economic Integration, said in a statement tied to the report.  

 

“Governments and companies are also much better now at managing their debt than they were a decade ago,” he added. 

 

Indonesia was the fastest growing corporate bond market in the region during the first quarter, expanding by 26.9 percent to $20 billion year-on-year. It was followed by the People’s Republic of China, which had the region’s largest corporate bond market at $1.1 trillion, up 25.3 percent. — Sieg Alegado/VS, GMA News