1. Private Corporate Bonds
| Instruments | A. Long-term Commercial Paper (LTCPs) B. Private Corporate Bonds |
|
Issuer |
Private Corporations |
| Tenor | 2 - 7 years |
| Currency | Philippine peso |
| Interest Payment |
Usually, floating with reprised quarterly with payments based on the actual number of days in an interest period on the basis of a 365-day year. |
| Average Issue Size | PHP1 to 3 billion |
| Minimum Amount of Bid |
For issues of up to two years - PHP100,000; issues between two years and four years - PHP50,000 and for issues of four years and over - PHP20,000. |
| Method of Sale in the Primary Market |
Underwritten basis by financial institutions licensed by the Securities and Exchange Commission and authorized by the issuer |
| Who May Apply | Institutional and retail resident and nonresident investors. |
| Redemption |
LTCPs and corporate bonds are redeemed at par upon maturity. |
| Taxation |
Interest income subject to a 20% final withholding tax. |
| Secondary Market Trading |
Extremely limited, mostly between financial institutions on behalf of retail investors. |
List of Corporate Bond Issuers
The financially healthiest Philippine companies dominate the private debt market. Manufacturers and financial intermediaries/holding companies are by far the largest issuers of domestic commercial paper. These are local conglomerates such as the Ayala Corporation and San Miguel Corporation.