How large is the Philippines bond market?

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How large is the Philippines bond market?

Fri, 07/22/2011 - 14:27

What is the size of debt market in the Philippines?

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Rod's picture

As of June 2010, the

Fri, 07/22/2011 - 14:28

As of June 2010, the Philippine local currency bond (debt) market was estimated at US$66.1 billion or PhP3.1 trillion, which grew by 11.6 percent from a year ago.

"This growth stemmed from increases in both government bonds and corporate bonds outstanding," the Asian Development Bank (ADB) reported in its quarterly Asia Bond Monitor.

However, the Philippines total outstanding local currency bonds of US$66.1 billion was smaller compared to Malaysia's $199 billion, Thailand's $191 billion, Singapore's $159 billion, and Indonesia's $108 billion. Philippine bonds represented 36.6 percent of GDP as of the second quarter, which was also one of the smallest in the region.
By type of bonds, the outstanding Philippine government bonds amounted to PhP2.7 trillion ($58.1 billion) as of June, up by 9.8 percent year-on-year.  Treasury bonds, which comprised 74 percent of total government bonds, rose 18.3 percent year-on-year to P2.0 trillion ($43 billion).
In contrast, treasury bills fell 16.5 percent year-on-year to P567.4 billion ($12.2 billion). Other bonds, which include government-guaranteed bonds and bonds owned by government-owned-and-controlled corporations totaled P131.7 billion ($2.8 billion), which was up 47.9 percent from a year ago.
Meanwhile, the Philippine local currency corporate bonds outstanding soared 26.8 percent year-on-year to P376.2 billion or $8.1 billion as of June 2010.  On a quarter-on-quarter basis, corporate bonds outstanding was up 5.5 percent, as four companies companies issued a total of P18.0 billion ($388.1 million) in bonds during the quarter.
These companies were Ayala Corporation which issued P10.0 billion in bonds; Rizal Commercial Banking Corporation, P5 billion; Metrobank Card Corporation, P2.0 billion; and SM Prime Holdings, P1.0 billion.
However, in terms of outstanding local currency bonds, San Miguel Corporation remained the largest holder with P38.8 billion, followed by Banco de Oro Unibank with P30.9 billion, RCBC with P21.0 billion, and Metrobank, with P18.5 billion.
Also in the list of top ten bond issuers are Manila Electric Company with P18.3 billion, Philippine National Bank with P17.75  billion, Globe Telecom with P16.8 billion, Petron Corporation with P16.3 billion, Ayala Corporation with P16 billion and Robinsons Land Corporation with P15 billion.