The Philippines is on the path to post-pandemic recovery in 2022, according to the country’s largest foreign bank Citi. The bank expects deal activity to further pick up in 2022 with opportunistic and cost-effective financings to support growth.
Both multinational and local companies are also expected to experience tailwinds from spending across most industries further supporting balance sheets. Financial sponsors are also expected to capitalize on more local investment opportunities giving rise to more deal opportunities.
Citi Asia Pacific Head of Banking, Capital Markets and Advisory, Jan Metzger, affirmed Citi’s commitment to the Philippine market.
“Citi will be celebrating 120 years in the country next year and the Philippines is one of our fastest-growing markets for Banking, Capital Markets and Advisory work with clients. The country is home to many world-class companies, and we are committed to supporting their ambitions. There is a massive transformation happening across all industries and with a global network this has helped sharpen Citi’s dialogue with clients in the country as they increasingly want a global perspective,” Metzger said.
In 2021, Citi Philippines, through its local securities business Citicorp Capital Philippines, Inc., was key in assisting clients raise funds via the fixed-income market.
Citi helped supranational and corporate clients raise over $10B. In addition to EUR, AUD, and USD issuances of supranational, sovereign, and financial institution clients, Citi, leveraging on its global network and together with the Philippine team, led the largest Equity Transaction in the Philippines amounting to P48.8 billion and a successful equity trade for a supranational’s holdings amounting to $90 million.
Citi acted as Joint Global Coordinator, Bookrunner and Underwriter to Monde Nissin Corp, for its initial public offering. Monde Nissin raised P48.6 billion, and listed before the Philippine Stock Exchange in June 2021 with the largest ever equity transaction in the Philippines, and the largest ever consumer Food & Beverage IPO in ASEAN.
According to Citi Philippines Corporate Bank Head Fernando Fleury, Filipino corporates continue to expand in the region and globally, and Citi is very well positioned to support them from their treasury needs to strategic advisory.
“We will continue to collaborate and problem solve, and work tirelessly on behalf of our corporate, financial institution, and public sector clients to deliver a range of strategic corporate finance and advisory solutions that meet their needs, no matter how complex,” Fleury said.
Fleury adds that infrastructure continues to be a big area of focus for many clients, especially in the digital space, which include the building of towers, data centers and fiber networks. They are also seeing the quick rise of fintechs and digital banks.
“Citi continues to champion digital transformation which is essential in today’s environment as workplaces still leverage on remote work capabilities and more customers transact online,” said Fleury.
Citiis also leading the way in Environmental, Social and Governance (ESG) initiatives in the Philippines, having helped raise over $1 billion in green and sustainable bond financing in the past two years.
The bank has advised three of the biggest local financial institutions in setting up their Green and Sustainability Financing Framework. Citi also advised the set-up of the Sustainability Financing Frameworkand acted as Joint Global Coordinator of the first green, social, or sustainability bond by a global Emerging Markets water utility and the first Asean Sustainability Bond by a Philippine corporate. Last September, Citi was also instrumental in the issuance of the Asian Development Bank’s first blue bond, the $208 million 15-year issue, which will finance ocean-related projects in Asia and the Pacific.
