Today, we mark a milestone in the progress of our capital markets towards full digitalization.
For the first time ever, Ayala Land’s corporate bond offer will be listed in the capital market and the Philippine Dealing and Exchange Corporation using the electronic Securities Issue Portal.
I commend the PDS or the Philippine Dealing System Holdings Corporation Group for implementing this historic project. This digitalization initiative is an excellent response to my challenge to the PDS Group to foster greater financial inclusion and help deepen our capital markets by making its systems more efficient and accessible to both issuers and retail investors.
The electronic Securities Issue Portal would not only digitize the capital markets but would also benefit the environment. Doing away with voluminous paper-based submissions would save millions of trees.
This electronic system democratizes bond investing. By moving towards digitalization, we are taking away the pain points that discourage companies and retail investors from participating in the capital markets. We are making processes more cost-efficient for everyone.
This electronic system could dramatically generate more liquidity in the market because the paper-based submission of requirements is among the factors that raise friction costs for financial transactions. More importantly, this would help fulfill the Duterte administration’s goal of broadening financial inclusion.
When we achieve full digitalization of our capital markets, trading will be more efficient and competitive. I encourage the PDS Group, however, to continuously strengthen the cybersecurity safeguards of this digital system to protect it from potential threats and risks.
Ayala Land’s pilot electronic issuance offers a four-year 10-billion peso bond. The purpose of this offer is to take advantage of the low interest rate environment in order to retire old debt. This issuance is testimony to the strength of our country’s fiscal and financial position, the framework that enables our market to maintain a low interest rate regime. This low-interest environment makes financing investments cheaper and will help power our strong economic recovery.
I congratulate Ayala Land for this pioneering electronic issuance. I wish the best for this offering and hope it will lead us to many more similar listings over the next few weeks and months.
Let us continue taking bold steps forward towards a more efficient and more vigorous capital markets system.
Thank you.
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