Toyota Financial wraps up P5-B bond issue

Toyota Financial Services Philippines Corp. (TFSPH) has raised P5 billion from its maiden bond offer.

This enables the automotive financing and leasing arm of conglomerate GT Capital Holdings Inc. to tap a wider investor base ahead of anticipated asset growth.

In a regulatory filing on Wednesday, GT Capital said TFSPH”s fixed-rate bonds were listed on the Philippine Dealing and Exchange Corp. last Oct. 21.

The issuance comprised two-year bonds at a rate of 5.7725 percent and three-year bonds at 5.9418 percent.

These saw a strong market reception, according to GT Capital, as demand reached as high as 3.5 times the minimum offer size of P2 billion. This prompted TFSPH to close the offer period early.

“With over two decades of experience in the Philippine automotive financing industry and the full support of our shareholders … we are delighted by the overwhelming response from investors, which underscores the market’s trust and confidence in our stability and growth prospects,” TFSPH president Rommel Ocampo said in a statement.

“This achievement reinforces our commitment to supporting Toyota customers and dealer partners nationwide and establishes us as an even more competitive leader in the industry,” Ocampo added.

TFSPH, in which GT Capital holds a 40-percent stake, 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 offer represents the first tranche of TFSPH’s P20-billion bond program.

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The lender received an issuer credit rating of PRS Aaa (Corp). with a stable outlook from Philippine Rating Services Corp. This means that TFSPH has a “very strong” capacity to meet its financial commitments.

GT Capital earlier said proceeds from the offer would be used to diversify TFSPH’s funding sources and support the latter’s anticipated asset growth.

“This will also enable the company to tap a wider investor base, targeting both institutional and individual investors,” the Ty family-led conglomerate noted in a previous statement.

In the first three months of its fiscal year, TFSPH logged an 11-percent rise in revenues at P3.9 billion thanks to its bigger loan book. Its total loan receivables also rose 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. This reached a record-high as its core banking business under Metropolitan Bank and Trust Co. delivered strong growth.