PDEx expects surge in demand for funds

MANILA, Philippines—Philippine Dealing and Exchange Corp. (PDEx) is aiming to at least match last year’s performance in terms of money raised in the bond market, its top official said.

PDEx, which operates the country’s bond and currency trading platform, said eight issuers raised P83.5 billion last year via bond sales.

PDEx president and chief operating officer Cesar Crisol told reporters in a recent interview that it could match or exceed that figure for 2014, noting the huge demand for funding for big-ticket infrastructure projects.

“We expect equal or even better performance,” Crisol told reporters. “A big factor is, there is demand for long-term funding as there are more infrastructure projects that require this.”

Conglomerate San Miguel Corp., for example, is expected to start by April the construction of its Skyway Stage 3 project, a 14.8-kilometer elevated expressway, linking Northern and Southern Metro Manila. Rival Metro Pacific Investments is also keen to start this year its own 8-kilometer connector road in the third quarter.

“Right now, it’s conducive for issuers to come into the market and take advantage of the liquidity,” Crisol said. He also downplayed concerns over volatility caused by money tightening moves by the United States Federal Reserve.

“(For bonds) there is still a reasonable return for investors, it’s a decision they have to make,” he added.

So far this year, Philippine Long Distance Telephone Co. raised P15 billion via the sale of seven- and 10-year bonds at 5.225 percent and 5.28 percent, respectively. ABS-CBN Corp., the multimedia arm of the Lopez group, raised P6 billion through the sale of P6 billion in seven-year 5.335 percent notes.

Crisol said more deals were on the way.

“I think we are seeing underwriters pricing other issuances in the next two months,” he said, while declining to elaborate.