Philippines Newsletter - September 2022



Market Summary


Aggregate Deal Value* = USD1,174.1m

 

This month’s top deals


Energy & Utilities

DoE clears Razon takeover as Malampaya operator

The Energy department has approved the sale of the 45% stake of Shell Philippines Exploration B.V. (SPEx) in the Malampaya deep water project to a subsidiary of Razon-led Prime Infrastructure Capital, Inc.

ACEN’s PHP10 billion maiden green bond issuance oversubscribed

The PHP10 billion worth of maiden green bond issuance of Ayala-led ACEN Corporation has been oversubscribed by more than eight times, according to the company’s statement to the media. The bond issuance has a fixed interest rate of 6.0526% per annum; and it has a 5-year tenor that will be due in 2027. This is part of the PHP30 billion debt securities program registered by the Ayala energy company with the Securities and Exchange Commission (SEC).

PetroEnergy sells 25% equity in renewables unit to Japan’s Kyuden

AC ENERGY Corp. (ACEN) has filed with the Securities and Exchange Commission (SEC) the shelf-registration of debt securities worth up to PHP30 billion, of which the PHP10 billion first tranche will be offered as ASEAN green fixed-rate bonds.


PHRI’s solar project gets PHP2.65 billion loan from RCBC

A subsidiary of Meralco PowerGen Corp. (MGen)’s wholly owned renewable energy unit has secured a PHP2.7 billion loan facility from Rizal Commercial Banking Corp. (RCBC) for its renewable energy project. The 15-year term project financing facility will fund the ongoing construction of PH Renewables Inc. (PHRI)’s 75-megawatt alternating current (MWac) solar project in Baras, Rizal.

SPNEC’s PHP2.8 billion SRO fully subscribed

Solar Philippines Nueva Ecija Corporation’s (SPNEC) PHP2.8 billion stock rights offering has been fully subscribed due to strong demand from its existing shareholders despite the challenging market conditions. In a disclosure to the Philippine Stock Exchange, the firm said the 1.88 billion new common shares were fully subscribed in the first and second round of the SRO and Solar Philippines did not have to exercise its undertaking to mop up any unsubscribed share.

Articles links:

DoE clears Razon takeover as Malampaya operator

ACEN’s P10-B maiden green bond issuance oversubscribed

PetroEnergy sells 25% equity in renewables unit to Japan’s Kyuden

PHRI’s solar project gets P2.65 billion loan from RCBC

SPNEC’s P2.8-B SRO fully subscribed


Real Estate

Cebu Landmasters receives permit to sell P5-B bonds

CEBU LANDMASTERS, Inc. has received from the Securities and Exchange Commission its permit to sell P5 billion worth of retail bonds for its maiden offering, it told the stock exchange on Tuesday. The listed property developer said the issuance is the initial tranche of its shelf registration of fixed rate bonds amounting to P15 billion, which also received the order of registration from the regulator.


Villars file IPO application for P3.2-B power/infra REIT

Articles links:

Cebu Landmasters receives permit to sell P5-B bonds

Villars file IPO application for P3.2-B power/infra REIT


Consumer & Retail

Upson delays IPO to 2023

TECH retailer Upson International Corp. will defer its initial public offering (IPO) to the first quarter of 2023. In a media release, the company said that its plan to adjust its IPO timetable is aligned with the views of its underwriters First Metro Investment Corp. and RCBC Capital Corp. It said operational updates covering nine months, including the third quarter financial results, “would enable investors to better estimate a full-year performance.”

Victorias Milling buys LTG alcohol unit for PHP2.2 billion

The Keepers buying up to 50% stake in Spanish alcoholic beverage firm

Article link:

Upson delays IPO to 2023

Victorias Milling buys LTG alcohol unit for P2.2 billion

The Keepers buying up to 50% stake in Spanish alcoholic beverage firm


Financial Services

Philippines' BPI to merge with smaller Robinsons Bank

The Philippines' oldest lender said on Friday it is merging with a smaller commercial bank to expand its client base and fast-track growth. In a disclosure, Bank of the Philippine Islands (BPI.PS) said it will be the surviving entity merging with unlisted Robinsons Bank. Stockholders of Robinsons Bank will own around 6% of BPI, it added.

Article link:

Philippines' BPI to merge with smaller Robinsons Bank


Transportation & Logistics

Metro Pacific Tollways plans IPO to raise USD500 million

Metro Pacific Tollways Corp., the largest toll road developer and operator in the Philippines, could raise USD500 million from a planned initial public offering (IPO) on the local bourse, two sources close to the matter told Reuters. Metro Pacific Tollways’ President and Chief Executive Rodrigo E. Franco declined to comment on the financial details of the IPO but said the aim was to list the company in late 2023.

Article link:

Metro Pacific Tollways plans IPO to raise $500M


Infrastructure

Megawide sells airport project to Aboitiz Group for PHP15 billion

Megawide announced that it signed an agreement with Aboitiz InfraCapital (AIC), a subsidiary of Aboitiz Equity Ventures, to sell its interest in GMCAC, the “developer/operator” of the Mactan Cebu International Airport (MCIA), in an agreement that will transfer the ownership of the company over a two-year period.

Article link:

Megawide sells airport project to Aboitiz Group for P15-B


Healthcare & Life Science

AIA acquires MediCard PH

The parent-firm of AIA Philippines announced the acquisition of leading healthcare insurance provider MediCard Philippines, Inc. In an undisclosed amount, AIA Group Ltd. said the Hong Kong-based insurance company agreed to fully acquire the shares in one of the major health maintenance organizations (HMO) in the country, MediCard.

Article link:

AIA acquires MediCard PH


Technology

MRC Allied plans to acquire solutions provider 5G Security

MRC Allied, Inc. plans to acquire security solutions provider 5G Security, Inc., the holding firm said in a disclosure to the Philippine Stock Exchange on Wednesday. The company said that its board of directors approved the designation of Augusto M. Cosio, Jr., its president and chief executive officer, “to be the authorized representative in relation with the coordination, talk, transact and negotiate for the possible acquisition of 5G Security, Inc., subject with the due diligence of the company.”

PHL startup Shipmates raises PHP125 million to improve shipping platform

Article link:

MRC Allied plans to acquire solutions provider 5G Security

PHL startup Shipmates raises P125M to improve shipping platform


Other

SMC files registration for PHP60 billion bonds

ANG-LED San Miguel Corp. (SMC) filed the registration statement and preliminary prospectus for its PHP60 billion fixed-rate bonds to be used for redemption of preferred shares and bonds, and debt repayments. According to the company’s prospectus, the base offer amounts to PHP40 billion with an oversubscription of up to PHP20 billion and will be issued at 100% of face value.

Phinma locks in gains via sale of treasury shares

Aboitiz Group exits Sri Lanka

Article link:

SMC files registration for P60-B bonds

Phinma locks in gains via sale of treasury shares

Aboitiz Group exits Sri Lanka


Note: Deal values only include disclosed completed deals with amounts restricted to the local scene i.e. amounts related to the Philippine entity and/or business. Rumored, announced, or planned deals are not included. Cross-posted deals are also adjusted to avoid double count.

*USD 1.00 = PHP58.8 as of 09/30/2022