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Philippines Newsletter - July 2023




Market Summary


  • In July, the financial services sector had the highest transaction amount raised among all sectors with a total raise of USD797m, led by an M&A transaction for RCBC by Sumitomo Mitsui Banking Corp., and BPI's debt financing round that raised USD480m and USD300m respectively.

  • Energy and utilities had the sole in the month of July in the Philippines, as Repower Energy Development Corp. (RDEC) raised a total of USD205m.

  • Real estate had a total of USD78m raised from 3 separate transactions over the month, led by the the listed real estate investment trust of developer Megaworld Corp., Mreit, which sold over USD65m of common shares through an overnight placement.



Aggregate Deals Value = USD1,124m

 

This month's top deals


Financial services

RCBC completes sale of 15% stake to Sumitomo for PHP27bn

Rizal Commercial Banking Corp., the fifth-largest private bank in the country in terms of assets, said it completed the sale of an additional 15 percent stake amounting to PHP27 billion to Sumitomo Mitsui Banking Corp., a subsidiary of Sumitomo Mitsui Financial Group and one of the largest banks in the world. RCBC said in a disclosure to the stock exchange the PHP27 billion capital infusion would reinforce its growth trajectory, particularly in core businesses in corporate, small and medium enterprises and retail segments.


Article link:

RCBC completes sale of 15% stake to Sumitomo for P27b

BPI signs USD300m loan facility with banking consortium

UnionBank Injects PHP900m Capital into UnionDigital Bank



Energy and Utilities

Repower Energy shares gain in PHP1.15bn IPO

REPOWER Energy Development Corp. (REDC) saw its shares gain four centavos during its initial public offering (IPO) where it raised PHP1.15 billion to fund the expansion of its renewable energy portfolio. For its IPO, the company offered 200 million primary common shares, with an over-allotment option of up to 30 million shares, priced at P5 apiece.


Article link: Repower Energy shares gain in P1.15-billion IPO

Real Estate

Megaworld: Mreit’s share sale attracts institutional investors

Mreit Inc., the listed real estate investment trust of developer Megaworld Corp., has sold some 279.4 million common shares through an overnight placement. The said shares owned by Megaworld were sold for PHP13 per share. The company said it raised PHP3.63 billion from the transaction.


Article link:

Megaworld: Mreit’s share sale attracts institutional investors


RCBC sells property units to Filinvest Land

CIP buys Tierra Ariana for PHP100m

Megawide board greenlights PH1 acquisition for PHP5.2bn

Telecommunications and media

Globe closes sale of 115 towers worth PHP1.4bn to Unity Digital

Globe Telecom Inc. announced it closed the sale of 115 towers worth PHP1.4 billion to Unity Digital Infrastructure. The telecom unit of the Ayala Group said the transaction was the first tranche of the 447 sale-and-leaseback deal with Unity, which was signed in May 2023.


Article link:

Globe closes sale of 115 towers worth P1.4 billion to Unity Digital

Technology

Philippines-based consumer fintech Salmon secures USD20m debt financing

Consumer fintech Salmon based in the Philippines has secured a USD20 million debt facility from US Argentem Creek Partners. The debt transaction sets a new benchmark as the largest-ever debt financing for a Series A tech company in the Philippines. Also, it positions the company as one of the fastest-growing fintechs in Southeast Asia. With this debt facility, Salmon will expand its loan book, leveraging its existing point-of-sale and cash loan lending. It will also launch new disruptive products in the second half of 2023.


Article link:

Philippines-based consumer fintech Salmon secures $20M debt financing


Paytaca Raises PHP24.5m Seed Funding to Foster Bitcoin Cash Adoption in the Philippines

Sprout Solutions expands artificial intelligence capabilities, acquires Aiah AI



Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double count.

Exchange rate: USD1.00 = PHP56.29 as of 08/11/2023.

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