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Philippines Newsletter - June 2024



Market summary


  • The majority of deals in June were fundraising transactions totaling c. USD148.5m, spanning the Real Estate, Technology, Transportation & Logistics, and Energy industries.

  • Highlights include SM Prime Holdings raising USD42.5m through a bond offering, IFC USD7m in First Circle, BayaniPay securing USD3m in seed funding, Mober obtaining USD6m to expand its electric vehicle fleet, and Alabat Wind Power Corp. securing a USD90m loan facility for its wind project.

  • Additionally, a notable M&A transaction in the real estate sector was announced, with Ayala Land Inc. acquiring Aboitiz Land and Aboitiz Equity Venture’s 50% equity interest in Cebu District Property Enterprise Inc. for c. USD30 million.


*Aggregate Deal Values = c. USD148.5m

 

This month’s top deals



Real Estate

Ayala Land buys out Aboitiz stakes in Cebu District Property for PHP1.81 billion

Ayala Land, Inc. (ALI) will fully own Cebu District Property Enterprise, Inc. (CDPEI) after buying the stakes of Aboitiz Equity Ventures, Inc. (AEV) and AboitizLand, Inc. for PHP1.81 billion. In a stock exchange disclosure, ALI announced that it signed a share sale agreement with AEV and AboitizLand on June 14. Under this deal, ALI buys the 50% equity interest of AboitizLand, and AEV in CDPEI, in CDPEI, consisting of 18.1 million shares at PHP100 per share. The move is expected to strengthen ALI’s presence in Visayas.


Article link:

Ayala Land buys out Aboitiz stakes in Cebu District Property for PHP1.81 billion


SM Prime says retail bond offering generates PHP25 billion

Sy-led property developer SM Prime Holdings, Inc. successfully raised P25 billion through its fixed-rate retail bond offering. The company listed the bonds on the Philippine Dealing and Exchange Corp. on June 24, SM Prime said in a statement to the stock exchange. The funds generated will be used to refinance existing debt obligations and to further expand SM Prime’s property portfolio, the company said.

Article link:

SM Prime says retail bond offering generates PHP25 billion


Technology

IFC invests USD7 million in local fintech firm First Circle

The International Finance Corp. (IFC) acquired a stake in fintech company First Circle for USD7 million (about PHP410 million), to help boost lending to small and medium enterprises (SMEs) in the Philippines. A June 15 disclosure showed that the IFC board approved on June 13 its equity investment in Singapore-registered Carabao Capital Global Pte Ltd., which operates in the Philippines as First Circle. The private sector arm of the World Bank Group said this investment aims to support First Circle as it raises funds to scale up its operations and loan book in the Philippines, where SME credit penetration is among the lowest in Southeast Asia.


Article link:

IFC invests USD7 million in local fintech firm First Circle

BayaniPay secures USD3 million funding for expansion

Global payment solution platform BayaniPay is aiming to expand its services to at least four countries in the Southeast Asian region as it targets to lead the digital solution space in the Philippines by year end, its top official said. This comes after the company secured seed funding of USD3 million, which will help boost its expansion and bankroll new services.


Article link:

BayaniPay secures USD3 million funding for expansion


Transportation & Logistics


Green logistics firm Mober secures USD6 million to add new EVs to its fleet, develop new charging yard

Mober, a green logistics company in the Philippines, has secured USD6 million in fresh funding through a mix of equity and convertible notes. Singapore’s Clime Capital led the round under its Southeast Asia Clean Energy Facility II (SEACEF II). The money will support Mober’s goal of acquiring 238 electric vehicle (EV) units by 2025 and phasing out internal combustion engine (ICE) vehicles, with a target of operating at least 400 EV units by 2027.


Article link:

Green logistics firm Mober secures USD6 million to add new EVs to its fleet, develop new charging yard


Energy & Utilities


NexGen pegs IPO price at PHP1.68/share

Soon-to-be-listed renewable energy player NexGen Energy Corp. has priced the shares on its initial public offering (IPO) at the top end of its price guidance. The final offer price for NexGen’s common shares has been set at PHP1.68 apiece. With the offer price, the estimated gross proceeds from the sale of the firm shares will be at PHP504 million and an additional PHP75.6 million from the sale of option shares.


Article link:

NexGen pegs IPO price at PHP1.68/share


Alternergy secures PHP5.3 billion loan for Quezon wind project

Alternergy Holdings Corp., through its unit Alabat Wind Power Corp. (AWPC), has secured PHP5.3 billion in financing from Rizal Commercial Banking Corp. (RCBC) to partially fund the construction of its 64-megawatt (MW) wind project in Quezon province.


Article link:

Alternergy secures PHP5.3-billion loan for Quezon wind project


Telecommunications & Media


PLDT inches closer to finalizing USD1 billion data center sale — Pangilinan

PLDT Inc. is now proceeding with the sale of 49% of its data center business to a foreign company for more than USD1 billion, the company’s chairman said. To recall, PLDT has been in talks to sell up to 49% of its data center business, ePLDT, Inc., to Japan’s Nippon Telegraph and Telephone (NTT), which valued its data center at USD1 billion.


Article link:

PLDT inches closer to finalizing USD1 billion data center sale — Pangilinan


Other

Ayala board okays PHP15 billion share offering

Ayala Corp.'s board of directors approved the issuance of peso preferred shares with a base amount of PHP10 billion and an oversubscription option for up to PHP5 billion, subject to regulatory requirements.


Article link:

Ayala board okays PHP15 billion share offering


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

*USD 1.00 = PHP58.868 as of 28/06/2024

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