Corporate bonds

Outstanding PH corporate bonds hit P1.5T in June

Outstanding local currency (LCY) corporate bonds in the Philippines reached more than 1.5 trillion pesos at the end of the second quarter, the finance department said, noting that several ongoing reforms will help boost demand for financial securities.

In a statement over the weekend, the DoF said the LCY of 1.51 trillion pesos during the period is equivalent to 8.2% of the country’s gross domestic product (GDP).

“Twenty years ago, virtually tiny, the Philippine LCY bond market grew tremendously. In many ways, the ability to issue LCY bonds reflects investors’ confidence in the economy,” the Ministry of Finance said. Finance.

“The fiscal sector, once the Achilles’ heel of the economy, has become a strong pillar of sustainable development and a catalyst for the development of capital markets,” he added.

The DoF said the passage of Train 1 has helped democratize real estate investing.

“To date, three real estate investment trusts (REITs) have made their public debut and another is already accepting subscriptions for its initial public offering (IPO),” the finance department said.

The DoF said passage of the Capital Markets Development Bill of 2021 is expected to increase demand for financial securities.

The proposed bill aims to develop a sustainable company pension system.

“The larger issuance of these securities, however, will depend on the sustainability of economic growth and the efficiency of financial markets,” the DoF said.

He noted that economic growth can be enhanced by the participation of foreign capital which could be catalysed by the proposed amendments to the Foreign Investment Law, the Civil Service Law and the Retail Trade Liberalization Law.