Toyota Financial offers P2-B bonds at nearly 6% yield
The automotive financing and leasing arm of GT Capital Holdings Inc. will raise P2 billion from the debt market as it anticipates broad asset growth and aims for a wider investor base.
In a regulatory filing on Monday, GT Capital said the maiden bond offer of Toyota Financial Services Philippines Corp. (TFSPH) would involve two-year and three-year bonds. These will carry fixed rates of 5.7725 percent and 5.9418 percent, respectively.
“TFSPH will use the proceeds to further diversify its funding sources and support its anticipated asset growth,” the Ty-led conglomerate noted in its disclosure. “This will also enable the company to tap a wider investor base targeting both institutional and individual investors.”
TFSPH, in which GT Capital holds a 40-percent stake, currently offers financial products for customers of automotive giant Toyota in the Philippines. Japan-based Toyota Financial Services Corp. owns the remaining 60 percent of TFSPH.
The bond offer period will run from Oct. 6 to Oct. 13, with First Metro Investment Corp. and ING Bank NV Manila Branch tapped as joint lead arrangers and bookrunners. They are also the selling agents, along with Metropolitan Bank and Trust Co. and BPI Capital Corp.
High credit rating
Philippine Rating Services Corp. (PhilRatings) earlier issued a “PRS Aaa” with a stable outlook rating for TFSPH. This is its highest issuer credit rating, indicating that TFSPH has a “very strong” capacity to meet its financial commitments.
In giving this rating, PhilRatings said it had considered TFSPH’s “strong and highly supportive” shareholders, the Toyota franchise, its “good” asset quality and sustained revenue growth due to the expansion of its loan portfolio.
In the first three months of its fiscal year, TFSPH logged an 11-percent rise in revenues to P3.9 billion, thanks to its bigger loan book. Its total loan receivables likewise climbed by 9 percent to P159.4 billion.
For its part, GT Capital reported a 34-percent surge in its first-half profit to P18.42 billion, a record high as its core banking business under Metrobank delivered strong growth.
