In July, the financial services sector had the highest transaction amount raised among all sectors with a total raise of USD797m, led by an M&A transaction for RCBC by Sumitomo Mitsui Banking Corp., and BPI's debt financing round that raised USD480m and USD300m respectively.
Energy and utilities had the sole in in the month of July in the Philippines, as Repower Energy Development Corp. (RDEC) raised a total of USD205m.
Real estate had a total of USD78m raised from 3 separate transactions over the month, led by the the listed real estate investment trust of developer Megaworld Corp., Mreit, which sold over USD65m of common shares through an overnight placement.
Aggregate Deals Value = USD1,124m
This month's top deals
RCBC completes sale of 15% stake to Sumitomo for PHP27bn
Rizal Commercial Banking Corp., the fifth-largest private bank in the country in terms of assets, said it completed the sale of an additional 15 percent stake amounting to PHP27 billion to Sumitomo Mitsui Banking Corp., a subsidiary of Sumitomo Mitsui Financial Group and one of the largest banks in the world. RCBC said in a disclosure to the stock exchange the PHP27 billion capital infusion would reinforce its growth trajectory, particularly in core businesses in corporate, small and medium enterprises and retail segments.
BPI signs USD300m loan facility with banking consortium
The Ayala Group’s Bank of the Philippine Islands (BPI) sealed a USD300 million (PHP16.4 billion) debt deal with a consortium of 21 lenders as it further strengthens its balance sheet. BPI announced the signing of the three-year syndicated loan facility, which was upsized by 50 percent to accommodate strong demand. Overall orders were two times the original amount of USD200 million.
UnionBank Injects PHP900m Capital into UnionDigital Bank
UnionDigital Bank (UD), the digital banking subsidiary of Union Bank of the Philippines, has secured PHP900 million (USD16.2 million) from its parent bank. The capital infusion is still subject to Bangko Sentral ng Pilipinas’ (BSP) regulatory approval. The digital bank said that the latest additional infusion will help drive the digital bank’s expansion, particularly in digital loans which will soon be launched in the UD app.
Energy and Utilities
Repower Energy shares gain in PHP1.15bn IPO
REPOWER Energy Development Corp. (REDC) saw its shares gain four centavos during its initial public offering (IPO) where it raised PHP1.15 billion to fund the expansion of its renewable energy portfolio. For its IPO, the company offered 200 million primary common shares, with an over-allotment option of up to 30 million shares, priced at P5 apiece.
Article link: Repower Energy shares gain in P1.15-billion IPO
Megaworld: Mreit’s share sale attracts institutional investors
Mreit Inc., the listed real estate investment trust of developer Megaworld Corp., has sold some 279.4 million common shares through an overnight placement. The said shares owned by Megaworld were sold for PHP13 per share. The company said it raised PHP3.63 billion from the transaction.
RCBC sells property units to Filinvest Land
RIZAL Commercial Banking Corp. (RCBC) has completed a deal for the sale and transfer of two wholly owned property units to Filinvest Land Inc. for roughly PHP633.3 million. In two separate, RCBC said it and Filinvest Land had signed separate share purchase agreements for the latter's acquisition of Niyog Property Holdings Inc. (Niyog Property), and Cajel Realty Corp. (Cajel Realty).
CIP buys Tierra Ariana for PHP100m
Chemical Industries of the Philippines Inc. (CIP) said it is acquiring Tierra Ariana Eco Land Inc. for PHP100 million. The company said the acquisition will gain CIP an indirect control over the BPI Paseo de Roxas Condominium Corp., the condominium corporation charged with the management of the Filinvest Financial Center condominium project and the entity with authority to develop the condominium project.
Megawide board greenlights PH1 acquisition for PHP5.2bn
The board of directors of listed construction firm Megawide Construction Corp. approved the move to fully acquire PH1 World Developers, Inc. for PHP5.2 billion. Under the transaction, Megawide will be acquiring 100% of the outstanding capital stock of PH1 or 579.46 million common shares.
Telecommunications and media
Globe closes sale of 115 towers worth PHP1.4bn to Unity Digital
Globe Telecom Inc. announced it closed the sale of 115 towers worth PHP1.4 billion to Unity Digital Infrastructure. The telecom unit of the Ayala Group said the transaction was the first tranche of the 447 sale-and-leaseback deal with Unity, which was signed in May 2023.
Philippines-based consumer fintech Salmon secures USD20m debt financing
Consumer fintech Salmon based in the Philippines has secured a USD20 million debt facility from US Argentem Creek Partners. The debt transaction sets a new benchmark as the largest-ever debt financing for a Series A tech company in the Philippines. Also, it positions the company as one of the fastest-growing fintechs in Southeast Asia. With this debt facility, Salmon will expand its loan book, leveraging its existing point-of-sale and cash loan lending. It will also launch new disruptive products in the second half of 2023.
Paytaca Raises PHP24.5m Seed Funding to Foster Bitcoin Cash Adoption in the Philippines
Paytaca, a Filipino fintech startup, recently raised USD450,000 or PHP24.5 million in a seed funding round from international prominent angel investors. According to the firm, the funds will be utilized to promote Bitcoin Cash and provide streamlined peer-to-peer payments. Paytaca secured seed funding from notable angel investors in the industry, including Molecular, Mike Komaransky, Renegade D, and Toorik.
Sprout Solutions expands artificial intelligence capabilities, acquires Aiah AI
Sprout Solutions, the leading homegrown B2B SaaS company and HR tech leader in the country, has finalized the acquisition of Aiah AI, a pioneering artificial intelligence (AI) company with offices based in the Philippines and Singapore. Aiah AI, through its technology, automates recurring business processes to increase productivity among companies and divert its focus to more higher-value activities. By leveraging AI, Sprout will generate more insight and analysis for its clients, as well as further increase the accessibility and efficiency of its platform for HR and payroll management.
Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double count.
Exchange rate: USD1.00 = PHP56.29 as of 08/11/2023.