COUNTRY REPORT SINGAPOREa tap of November 2020 bonds at 7% and
in October last year, it raised Ps10bn from
two-year notes at 7.15%.
Metrobank has now raised a total of
Ps56.75bn from bonds in four tranches
since Bangko Sentral ng Pilipinas in August
last year allowed banks to issue bonds
without prior authorisation.
The bank reported 15% growth in net
income to Ps6.8bn in the first quarter of
2019 driven by double digit growth in
operating income. Consolidated assets
reached an all-time high of Ps2.3trn as of
March 2019.
› PSB TO ISSUE TWO-YEAR NOTES
PHILIPPINE SAVINGS BANK is planning to raise
Ps3bn from two-year fixed-rate peso notes
at 5.6%, payable quarterly.
The issue opened on July 1 and will close
on July 17.
The bank will be able to diversify its
funding sources and use the proceeds to
expand its customer business.
“We believe that this bond issuance
is properly timed to provide potential
institutional and individual investors with
an alternative investment to lock-in their
funds at a high yield and for a relatively
shorter tenor,” said Jose Alde, president of
the bank.
A minimum investment of Ps500,000
is required to participate in the issue. The
bonds will be issued and listed on the
Philippine Dealing and Exchange Corp on
July 24.
Standard Chartered is the sole arranger.
PSB, Metrobank, First Metro Investment Corp and
Standard Chartered are the authorised selling
agents.
PhilRatings has assigned a Aaa rating to
the bonds.
The bank clocked 10.3% growth year-
on-year in net income to Ps 681m in the
first quarter of 2019 led by customer loan
portfolio expansion.EQUITY CAPITAL MARKETS
› AXELUM RESOURCES PLANS OCTOBER IPOAXELUM RESOURCES, a maker of coconut-based
products, plans an IPO of up to Ps7.7bn
(US$151m) in October.
The company said in a filing 700m
primary shares and 430m secondary shares
will be offered at a maximum price of
Ps6.81 each.
First Metro Investment is the issue manager.
Proceeds will be used for future
acquisitions and new manufacturing
facilities.
Axelum makes products such as coconut
water, coconut milk, desiccated coconut
and coconut oil for industrial and consumer
use.SINGAPORE
DEBT CAPITAL MARKETS
› THOMSON MEDICAL CHECKS MARKET PULSETHOMSON MEDICAL GROUP has mandated DBS
as sole global coordinator as well as joint
bookrunner with Maybank and Credit Suisse
for a potential Singapore dollar bond
offering.
This will be a debut issue from the
Singaporean healthcare company, which
met fixed income investors last Wednesday
to introduce its credit profile.
The bonds will be drawn from a newly
established multi-currency debt issuanceprogramme of S$500m (US$369m). Under
the programme, Thomson Medical can sell
bonds denominated in various currencies,
and in senior and perpetual structures.
Proceeds are to be used for general
corporate needs, including debt refinancing
as well as funding acquisitions, expansion
plans, capital expenditure and general
working capital needs.
Thomson Medical provides healthcare
services for women and children and
operates medical centres in Singapore and
Malaysia.› MAXI-CASH LAUNCHES TENDERMAXI-CASH FINANCIAL SERVICES last Monday
kicked off a tender offer to repurchase and
exchange S$70m of outstanding 5.5% bonds
ahead of maturity on April 27 2020.
Holders can choose to sell back the bonds
to the Singaporean pawnbroker or swap
the notes for new 6.35% Singapore dollar-
denominated notes due 2022. Maxi-Cash
has indicated that it will only repurchase in
cash up to S$5m of outstanding notes.
The company, a subsidiary of jewellery
store chain owner Aspial, sold an original
S$50m of the 5.5% bonds in April 2017,
following that up with a S$20m tap six
months later. The existing notes were
quoted at a bid of 98.55 or a yield of over
7.3% last Monday, according to Refinitiv
data.
Of the total S$70m issue, S$4m is held by
the company’s directors and/or controlling
shareholders. Some bondholders,
including directors and shareholders, have
indicated an interest to remain invested
in the company’s bonds beyond the 2020
maturity. Maxi-Cash said this interest
prompted it to launch the exchange offer,
which will extend its maturity profile and
keep it well capitalised for the next few
years.
While the bond repurchase will be made
at par, the exchange premium, equal to
0.75% of principal amount of the offered
notes, will be paid in cash. The tender ends
on July 12.Top bookrunners of all Philippine peso bonds
1/1/19 – 30/6/19
Amount
Name Issues Ps(m) %
1 Standard Chartered 2 43,750.0 23.1
2 Deutsche 2 25,320.0 13.4
3 HSBC 4 23,260.0 12.3
4 BDO Unibank 6 17,000.0 9.0
5 China Bk Capital Corp 5 16,500.0 8.7
6 ING 4 15,510.0 8.2
7 BPI 4 13,500.0 7.1
8 Philippine National 2 6,000.0 3.2
8 Metropolitan B&T 3 6,000.0 3.2
8 Security Bank 2 6,000.0 3.2
Total 16 189,153.7
Market volume
Proportional credit
Source: Refinitiv data SDC Code: AS10
Top bookrunners of Philippines syndicated loans
1/1/19 – 30/6/19
Amount
Name Deals US$(m) %
1* Standard Chartered 2 192.0 15.4
1* Bank of China 2 192.0 15.4
3 Citigroup 2 133.8 10.8
4* ANZ 1 133.3 10.7
4* DBS 1 133.3 10.7
4* Mizuho 1 133.3 10.7
4* SMFG 1 133.3 10.7
8 HSBC 1 75.1 6.0
9* KDB 1 58.7 4.7
9* Philippine National 1 58.7 4.7
Total 3 1,243.6
* Based on market of syndication and market total
Proportional credit
Source: Refinitiv data SDC Code: S15bPhilippines global equity and equity-related
1/1/19 – 30/6/19
Amount
Name Issues US$(m) %
1 UBS 2 446.6 52.2
2 Metropolitan B&T 1 153.5 18.0
3 Morgan Stanley 1 101.8 11.9
4 Deutsche 1 89.6 10.5
5 JP Morgan 1 63.4 7.4
6 SVS Sec 1 0.3 0.0
Total 7 855.2Source: Refinitiv data