Philippine infrastructure stock photo. INQUIRER.NET
The Manila-based multilateral lender Asian Development Bank (ADB) is bullish about prospects in the domestic corporate bond market as real estate firms participate in the Duterte administration’s ambitious “Build, Build, Build” program.
In a statement Monday, the ADB welcomed financing company AEON Credit Service (Philippines) Inc.’s P1-billion bond issuance, which was issued under the Asean+3 Multi-Currency Bond Issuance Framework (Ambif) and guaranteed by the Credit Guarantee and Investment Facility (CGIF).
AEON Philippines’ bond issuance was offered in two tranches maturing in 2021 and 2023, with the money raised to be used “to provide tricycle loans and personal loans, as well as financial services for the purchase of consumer products such as home appliances, furniture, electronics, and other consumer products, focusing particularly on the unbanked population and those with limited access to financial services,” the ADB said.
AEON Philippines is a subsidiary of AEON Group of Companies via Japan-based bank holding firm AEON Financial Service Co. Ltd.
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“We hope that this pilot bond will pave the way for similar bond issues going forward. Vibrant local currency bond markets provide valuable alternative sources of funding for companies while borrowing in local rather than foreign currencies strengthens the overall stability of the domestic financial sector,” ADB chief economist Yasuyuki Sawada said.
“We welcome the first CGIF-guaranteed Ambif bond in the Philippines. The issuance not only supports the development of the Philippine bond market but also Asean’s efforts toward financial integration,” Commissioner Ephyro Luis B. Amatong of the Securities and Exchange Commission (SEC) was quoted by the ADB as saying.
