Corporate bond issuances rose in 1st 10 months
Corporate bond issuances rose in the first 10 months of the year, fueling investment initiatives of businesses in the country, monetary officials said.
Data from the Bangko Sentral ng Pilipinas showed that bonds issued by corporate entities amounted to P160 billion from January to October, rising by a billion pesos from the P159 billion reported in the same period last year.
BSP officials said the increase in corporate bond issuances, even though it amounted to less than 1 percent, indicated how most fund owners’ sustained their appetite for portfolio investments.
Officials said that the relatively benign interest rate environment throughout 2011 supported the rise in bond issuances.
Officials also noted growth in capital raised from the equities market.
Data from the central bank showed that capital raised at the Philippines Stock Exchange amounted to P89 billion in the first 10 months, up by 33 percent from P67 billion in the same period last year.
Article continues after this advertisementThe significant rise in equity fund raising was attributed to the favorable outlook on emerging markets like the Philippines. This outlook prompted fund owners, both locals and foreigners, to purchase more emerging-market assets.