CORPORATE FINANCE

Our Corporate Finance Group provides a broad range of investment banking services to a diverse group of publicly- and privately-owned corporations, government-owned corporations, financial institutions, and individuals. Our Investment Banking services are as follows:

• Financial and Business Advisory

  Financial and Business Advisory includes transactions that involve fund raising, mergers and acquisitions, divestitures, and corporate and debt restructurings.

• Underwriting and Issue Management Underwriting and issue management
  include transactions that involve public and private issuance of equity and quasi equity.

• Private Placement

  includes transactions needing financial advisory and corporate valuations for the purpose of raising equity or quasi-equity, debt or mezzanine finance for privately held corporations. Loan Syndications Loan Syndication includes transactions needing an arranger for large-scale loans to be funded by various local and foreign financial institutions.

SECURITIES DEALERSHIP - EQUITIES

Unicapital Securities, Inc. (USI) was established on 10 March 1997 for the primary purpose of engaging in the sales and dealing of Philippine equity securities. It was registered with the Philippine Securities and Exchange Commission (SEC) on 4 April 1997 with an authorized capital of P200mn and a paid up capital of P110mn. Having acquired its membership with the Philippine Stock Exchange (PSE) on 28 May 1997, it received its securities broker and dealer license from the SEC on 19 June 1997.

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Our Fixed Income Desk is an active  player in the Securities market, having the capability and resources to purchase and sell for its own account and that of its clients a variety of financial instruments that include Government Securities (i.e. Treasury Bills, Treasury Notes, Retail Treasury Bonds, US Dollar-Linked Peso, among others), Private Securities and Asset Backed Securities, among others.

• Government Securities (GS) -- are direct, unconditional, unsubordinated obligations of the National Government (NG) issued by either the Bureau of the Treasury (Btr) or the Bangko Sentral ng Pilipinas (BSP). They can be denominated in both Philippine Peso and Foreign Currency such as the US Dollar.

  • Peso Denominated Securities Treasury

    • Treasury Bills (TBills)
      TBills are short-term obligations of the NG issued at a discount to its face value in original terms of 91, 182 and 364 days. The difference between the price at issuance and the face value is the interest to be received by the investors. Interest is received net of 20% final withholding tax (FWT)
    • Fixed Rate Treasury Notes (FXTNs)
      FXTNs are long-term obligations of the NG with original tenors of 2, 3, 4, 5, 7, 10, 20 and 25 years. These pay out interest, called coupons, on a semi-annual basis net of the 20% FWT. The interest rate is set at issuance and is fixed throughout the life of the obligation. The principal amount, called the face value, is paid out at the end of the obligation, together with the final coupon payment. 
    • Retail Treasury Bonds (RTBs)
      RTBs are long-term obligations of the NG with original tenors of 3, 4 and 5 years. These pay out interest, called coupons, on a quarterly basis net of the 20% FWT. The interest rate is set at issuance and is fixed throughout the life of the obligation. The principal amount, called the face value, is paid out at the end of the obligation, together with the final coupon payment.

• Dollar Denominated Securities

  • Republic of the Philippines Bonds (ROPs)
    ROPs are long-term dollar denominated obligations of the NG, issued by the BTr.  They are interest-bearing instruments, and pay out interest, called coupons, on a semi-annual basis. The coupons do not bear tax, but income derived from these instruments should form part of the income tax being declared by the investor.
  • Bangko Sentral ng Pilipinas Bonds (BSPs)
    BSPs are long-term dollar denominated obligations of the BSP with maturities ranging from 2008 to 2027. They are interest-bearing instruments, and pay out interest, called coupons, on a semi-annual basis. The coupons do not bear tax, but income derived from these instruments should form part of the income tax being declared by the investor.
  • Private Issues -- are obligations issued either by Local Government Units (LGUs), Government Owned and Controlled Corporations (GOCCs), or Private Corporations (Corporates) for the purpose of funding specific projects such as capital expenditures, lending programs (in the case of GOCCs), or expansion programs. They may be either on a clean basis or may be collateralized by certain assets, such as real estate or future receivables.
    • LGU Bonds
      LGU Bonds are issued by local government units to finance specific income generating projects in their locality. The LGU Code of 1991 empowers local governments to borrow for their own accounts. Collaterals for this may include a mixture of assignment of their LGU income as well as guarantees from other GOCCs such as the Local Government Unit Guarantee Corporation (LGUGC). They are usually long-term in nature and are interest bearing, with the interest being subject to 20% FWT.
    • GOCC Bonds
      GOCC Bonds are issued by government owned and controlled corporations to fund specific activities. They are usually long-term in nature and are usually interest bearing, with the interest being subject to 20% FWT. Certain issues, such as the one issued by the National Power Corporation are non-interest bearing and are sold at a discount to face value, with interest income being tax-exempt.
    • Corporate Issues
      Corporate Issues are bonds issued by private companies to fund their capital expenditure or expansion activities. Income derived from these bonds may be tax-exempt or subjected to 20% FWT, depending on how the issuance was structured.

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PRODUCTS

• Receivables Discounting
  A type of credit facility that is extended to corporate or individual clients that will assign its receivables from the sale of goods and services to its customers in exchange for cash for working capital.
• Promisory Note Line
  A credit facility that is extended to individuals and corporate borrowers through the issuance of a promissory note in favor of the lender.
• Employee Salary Group Plan
  Direct loans extended to the employees of accredited companies with repayments of the loans through a salary deduction arrangement with the employer company.
• Leasing
  A facility that allows the lessee to gain a long term contract for the use of an asset with regular rental payments for a specified number of years to the lessor. An agreement in which one party gains a long-term rental agreement, and the other party receives a form of secured long term debt.

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