PSALM lists P30-billion bonds at PDEx

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) has listed its P30-billion retail bonds at the  Philippine Dealing and Exchange Corp. (PDEx).

PSALM’s bonds, after a successful offering, would be the first government-owned and–controlled corporation (GOCC) to be listed in the PDEx.

In simple ceremonies last April 22, 2010, PSALM’s P30 billion worth of five-and seven-year fixed–rate retail bonds were listed at the PDEx, a licensed exchange facility that provides a centralized and efficient infrastructure for trading securities to ensure price discovery, transparency, and investor protection.

Prior to the listing, PSALM successfully sold its retail bonds, the largest peso-denominated debt issue offered in the Philippine capital market so far this year, which offered yields of 6.875 percent for the five-year tranche and 7.750 percent for the seven-year tranche.

PDEx chairman and CEO Vicente B. Castillo welcomed PSALM to its growing community as the 12th listed issuer to enter the secondary market, where previously issued bonds, notes or shares are bought and sold to help reduce investment risks and maintain liquidity in the financial system.

“This listing is very crucial because this is the first issue with a credit enhancement —a guaranteed bond — making this a Philippine credit risk-free issue,” Castillo said.

The PDEx official said PSALM’s entry would bring the total listed level to P149.3 billion.

“Our corporate issues are coming in steady streams to satisfy the growing appetite of our investor market for a wider array of options. And our trading community has responded with equal energy to commit themselves to support the liquidity of our private issuers and drive our investors’ appetite,” Castillo said. 

Securities and Exchange Commission chairman Fe B. Barin, congratulated PSALM, PDEx, the market makers, and the investors for working together to ensure the success of the undertaking, stressing that their efforts will redound to the country’s economic growth.

PSALM acting president and CEO Ma. Luz Caminero said the support of the PDEx will ensure the viability of the bonds in the market.

“As a long-term impact, this support will boost the relationship of PSALM with the community of investors, who are now assured of the best pricing for their acquired bonds, with the PDEx facilitating the transactions,” Caminero said.  

Energy Secretary Jose C. Ibazeta commended PSALM for its “innovative type of liability management,” expressing his hope that there will be more issues from GOCCs, specifically those with good balance sheets.