CORPORATE BONDS ISSUANCES GREW 129% SINCE 2016
The Philippine Dealing and Exchange Corp. (PDEX) reported that the private sector’s issuance of bonds — debt instruments issued by companies for capital raising — has grown exponentially since 2016 when the Duterte administration took over.
In his report to the Capital Market Development Council (CMDC), PDEX president and COO Antonio Nakpil said corporate bond issuances surged 129% to P1.48 trillion as of end-August 2020 from P645.6 billion in 2016.
The exponential increase indicates an active primary market dominated by financial institutions, according to Nakpil.
From P645.6 billion in 2016, the outstanding amount of bonds listed by the private sector rose to P792.5 billion in 2017, P1.05 trillion in 2018, and P1.32 trillion in 2019, he said.
The financial sector led the corporate bond issuance activities, accounting for 43% of total corporate bonds listed.
This is followed by the property market at 24%, holding firms at 15%, the industrial market at 13%, and consumer staples at 2%.