Toyota Financial Services Philippines Corporation ( TFSPH ), the automotive financing and leasing arm of major listed Philippine conglomerate GT Capital Holdings, accessed the Philippine capital markets for the first time via fixed-rate bonds amounting to 5 billion pesos ( US$85.50 million ), which generated strong investor demand.

The dual-tranche transaction, announced on October 21, consisted of a two-year bond paying a coupon of 5.7725% and a three-year bond carrying a coupon of 5.9418%. The deal was 3.5 times covered, and the strong market reception prompted TFSPH to exercise the oversubscription option, upsize the deal amount from the initial target of 2 billion pesos, and accelerate the close of the offer period.

“Our maiden issue in the Philippine capital markets marks a significant milestone in the company’s journey,” says TFSPH president Rommel Ocampo. He adds that the robust investors’ response illustrates the market’s trust and confidence in the company’s stability and growth prospects, and that the achievement establishes TFSPH as an even more competitive leader in the industry.

The bond offering was drawn under TFSPH’s 20-billion-peso bond programme. First Metro Investment Corporation and ING Bank ( Manila ) are the joint lead arrangers and bookrunners for the transaction. They are also the selling agents for the offering, together with Metropolitan Bank & Trust Company and BPI Capital Corporation.

Established in 2002, TFSPH is the exclusive provider of Toyota-branded financial solutions in the Philippines. It offers retail and leasing products to customers, as well as inventory financing to dealers nationwide. TFSPH is 40%-owned by GT Capital and 60%-owned by Japan-based Toyota Financial Services Corporation, which operates in over 37 countries globally. TFSPH supports Toyota sales in the Philippines in line with Toyota Motor Corporation’s global objectives.