How to Invest
Choosing the Securities you Want to Buy
Corporate Securities At-A-Glance

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.