BONDS
- Debt instruments issued by private corporations or the government to fund general expenditures, expansions, acquisitions, or to refinance existing debt
- Offered to both retail and institutional investors
- Listed and traded on the Philippine Dealing & Exchange Corp. (PDEx)
- Tenor is typically 1.25 to 10 years
CORPORATE
NOTES
- SEC registration-exempted debt instruments that are usually offered to institutional investors
- Tenor is typically 1.25 to 10 years
- Used by companies to standardize loan facility terms among several lenders (instead of multiple bilateral loans with varying terms)
PERPETUAL PREFERRED
SHARES
- SEC-registered fixed-income equity instruments that are listed and traded on the Philippine Stock Exchange (PSE)
- Perpetual but with call option, typically 3, 5, 7 and 10 years
COMMERCIAL
PAPERS
- SEC-registered short-term debt instruments that are listed and traded on the Philippine Dealing & Exchange Corp. (PDEx)
- Tenor is 365 days or less
- Used by companies as alternative to short-term unsecured financing
CORPORATE
TERM LOAN
- Used by companies typically to finance capital expenditures or refinance existing debt obligations
- Term loan involving a pool of select banks and/or financial institutions
- Can be secured or unsecured depending on the borrower’s credit profile
- Tenors range from 2 to 20 years
ACQUISITION
FINANCE
- A debt financing for business acquisition
- Cash flows from the acquired business is usually the primary source in servicing the debt incurred in the acquisition
- Typically secured by surety/guarantee and/or assets/shares of the acquired business
PROJECT
FINANCE
- A long-term financing for large, capital intensive projects (such as infrastructure and industrial projects)
- Diversifies the project risks among various parties
- Limited recourse to the sponsors
- Project cashflow is the main source of repayment and is controlled by the lenders