Toyota Financial raises P5B from oversubscribed debut bond sale

TOYOTA FINANCIAL Services Philippines has raised P5 billion from its maiden fixed-rate bond issuance after strong investor demand pushed subscriptions to 3.5 times its initial P2-billion target.

The offer period ran from Oct. 6 to 13, but the company said it closed the sale early after exercising its oversubscription option due to high demand.

“We are delighted by the overwhelming response from investors, underscoring the market’s trust and confidence in our stability and growth prospects,” Toyota Financial President Rommel J. Ocampo said in a regulatory filing.

The offering is the first tranche of the company’s P20-billion bond program. It consists of two-year Series A bonds due in 2027 with a fixed rate of 5.7725%, and three-year Series B bonds due in 2028 with a rate of 5.9418%.

Philippine Rating Services Corp. gave Toyota Financial a PRS Aaa issuer rating with a stable outlook, citing its strong shareholder base, solid brand franchise, healthy asset quality and steady revenue growth.

“This achievement reinforces our commitment to supporting Toyota customers and dealer partners nationwide and establishes us as an even more competitive leader in the industry,” Mr. Ocampo said.

First Metro Investment Corp. and ING Bank N.V. Manila Branch served as joint lead arrangers and bookrunners, while Metropolitan Bank & Trust Co. and BPI Capital Corp. acted as selling agents.

Toyota Financial is 60% owned by Japan-based Toyota Financial Services Corp. and 40% by GT Capital Holdings, Inc. — Alexandria Grace C. Magno