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 ! " #$ %"&#& !  %#$
HSBC, the second oldest bank
in the Philippines, opened its first
branch in Binondo in 1875.
The HSBC Group in the
Philippines consists of 8 Main
Bank Branches, 16 Savings
Bank Branches and 3 HSBC
Group Service Centers, together
employing over 8,000 people.
HSBC has 22 Corporate
Banking Relationship Managers
in the Philippines.
'('("#%) %*+ The alignment of the corporate, commercial, investment banking and
treasury businesses has allowed the Bank's dedicated relationship
management team to gain a deeper understanding of customers'
every requirement to offer tailor-made, value-added solutions.
#" "! ()#"$+ Strong capital markets presence and experience, with HSBC¶s
impressive abilities in project structuring, origination, syndication,
underwriting and transaction management.
,- ". "! ()#"$+ Unrivalled access to the worldwide equity markets as well as a full
range of advisory services to public sector bodies and listed and
private companies.
|!'! ()#"$+ HSBC is a major market maker in the Peso and Foreign Currency
fixed income and money markets. A wide variety of foreign exchange
services including spot, swaps, forward contracts, derivatives and
other structured products are also offered.
%$-(%/#+ HSBC Insurance Brokers (Philippines) Inc. specialises in business
continuity solutions, wealth management and employee benefits.


 ! " #$ %"&#& !  %#$

%0#$"1#%"%) %*+ @rawing on the expertise of industry teams from the region, HSBC
offers specialist advice on mergers and acquisitions, privatisations,
equity capital raising and structured finance.

.1#%"$%2$& A leading provider offering the full range of domestic, regional and
%*#1#%"+ global solutions that include collections (Integrated Receivables
Solutions), disbursements (Integrated Payments Solutions) and
liquidity management (Liquidity Management Solutions), Electronic
Filing and Payment System for Philippine government Tax Payments,
accessible through HSBC¶s delivery channels, HSBCnet, HSBC
Connect, and B2G (Business to Government) E-Tax, with the ability to
integrate with companies¶ ERP platforms.
('3#/"%24'(" Strong expertise in project finance is provided.
 %%/#+

#/-( " #$ #(0 /#$+ HSBC provides comprehensive global, regional and domestic fund
services including fund administration, global custody, corporate trust
and loan agency, and sub-custody settlement and services to the
international asset management industry. We are the leading choice of
global custodians, broker dealers and fund managers, and therefore
capture the largest share and trade settlement volume in the country.
(2# #(0 /#$ -!. A wide range of import and export services and trade finance facilities.
& %+ It is also a pioneer in electronic banking solutions in the Philippines for
exporters and importers.


&#%0#$"1#%"%2%5($"(-/"-(#&!!#%*#
(#) %*"&#0 / '-$/ (/!#

The quality of infrastructure and

the attractiveness of the tourism
investment proposition are linked Infrastructure remains
outdated

The Government is therefore

adopting a twin ± track
approach, inviting investment in Available funds Poor condition of infrastructure
both tourism and infrastructure are limited discourages private investment
using recognised models to
attract direct investment
Poor infrastructure restricts
general investment
The Philippines is far from alone
in facing similar challenges
Private and public income
Economic growth is hindered
remains low or will be reduced

Private sector activity

is constrained


&#('/&+
'!#$

PPP models have been Government:

established and are working in
many places around the world
1. Sets legal and regulatory framework;

The international banking 2. Identifies, scopes and develops projects; and

community and the pool of
available development finance is 3. Underpins unmanageable risks.
familiar with the model

Private Sector:
1. Verifies project framework, bids;
2. Undertakes design, build, operation; and
3. Provides funding (debt and equity).


0'-(!# '/!-%2 %*%0 ('%1#%"

[ 
 

6

 ë ë
Funding Considerations:
ë ë ë Source: 3 November, Bangko
' Historically low yields for fixed- Sentral ng Pilipinas
rate borrowers ëë

ëë

' Very strong momentum and

demand for long-term Philippine
ëë

corporate paper
ëë

' nshore US@ and PHP ë

liquidity in the Philippines is high ëë ëë ëë ëë
ëë ëë ëë ëë ëë ë ë


[ 


 
6
6  78 69
' Particularly strong demand
from onshore and offshore retail 

and High Net Worth Individuals



' Positive outlook and sentiment 9
and Philippine Macroeconomic Source: 3 November, 
factors and Philippine Bloomberg

government


4
             
Jan pr Jul Oct Jan 9 pr 9 Jul 9 Oct 9 Jan  pr  Jul  Oct 



'-(/#$'52#"5 %%/#: !'/!
Mixed economy of domestic
banks
Bank and capital markets
products (note: overlap between
private placemen/domestic
banks)
 "! ()#"$( 0"#
 "! ()#"$-! /'%2$
!/#1#%"%2'1#$" /%)$
PHP5-15 billion PHP10-15 billion
,- 2 ".7#("(%$/" '%9
(US 100 ± 300m) (US 200 ± 300m)
Up to 5-7 years, with limited Up to 5-7 years, with limited
#%'(
demand for 10 years demand for 10 years
Tenor tends to be relatively
limited
-((#%/. PHP (or US$) PHP

@eals tend to be bilateral and

"#$ Fixed or floating Fixed
club

 1#"!# 7- weeks 13-1 weeks

Single-Borrower Limit (SBL) on Requires SEC Registration

#,- (#1#%"$;'%$"( %"$
lenders Need AAA domestic rating

20%"*#$ Liquidity / Terms / FX hedge Size / tenor



'-(/#$'52#"5 %%/# /'11#(/ ! %"#(%" '%!
International banks are present
and can off-shore structures to
'%2$
allow larger deal volumes
Syndicated or club approach
US$ borrowing requires US$
%"#(%" '%!%)$7/'11#(/ !9  "! ()#"$
US$100m
US$200 to 500 million for US$
,- 2 ".7#("(%$/" '%9 (onshore)
Reg S Bonds
~US$200-500m (offshore)
Corporate Level : Up to 5 years Up to 5-7 years, with limited
revenue flows; limited capability #%'(
Project Finance : 10-12 years appetite for 10 years
for swaps

-((#%/. US$ (limited PHP / swapped) US@

Floating or

"#$ Fixed
Swapped

Corporate level : 10-12 weeks

 1#"!# 10-12 weeks
Project finance : 3-6 months

Limited local

#,- (#1#%"$;'%$"( %"$ booking / PHP FX risk, higher costs
Funding

20%"*#$ No SBL constraints offshore No SBL constraints


 '-(/#$'52#"5 %%/# $%2 !"#(!$

Eligibility criteria need to be met  !"#(!#0#!'1#%"

-!" : "#(!*#%/ #$ 4'("(#2 "*#%/ #$
*#%/ #$
@evelopment or capital account Up to US$250m each (or
driven US$30-70m
,- 2 ".7#("(%$/" '%9 25% Potentially > US$500m
each
of project size)
Generally co-lending approach
EC@ guidelines, up to
#%'( 10-15+ years 10-15 years 1 .5
Can significantly increase deal years
volumes
-((#%/. US$, can swap in PHP US$, some can do PHP

Fixed or floating (or

"#$ Floating or swapped Floating or swapped
swapped)

 1#"!# 6- months 6- months 12 - 16 weeks

#,- (#1#%"$; @evelopment aspect Eligible content
@evelopment aspect
'%$"( %"$ pen tendering process Upfront premium

Tenor, Withholding tax exemption

20%"*#$
Concessionary programs


<(2$//'!2#$ '('("#%) %*& !  %#$

#$" -:-$"'2 % 7=: #$"'1#$" /-$"'2 % #$" -:-$"'2 %

9 78:9 & !  %#$
& !  %#$ |lobal Finance: Best Sub-Custodian
Banks 2004-2007 and 2009-2010
The Asset Triple A Transaction
Banking Awards The Asset Triple A Transaction
Banking Awards
Source The Asset Triple A House Source The Asset Triple A House Source Global Finance

*".2(''<#( '
"#27=:9 &#%)#(<(2$:
#!$'5"&#6#(@
( 0" >" '% ? % #2 %*! #%"$ `
 
  

& !  %#$ "#*'(.7@:9  `    

  
     
Best Project Finance / Best Privatization |lobal Custodian Emerging Markets
Survey  /"#2$' %"$$-#
%*#(;' %" #2%2#(<( "#(;
HSBC acted as Mandated Lead Arranger,
' %"'')(-%%#(
Source TheAsset Triple ATrustee,
ffshore Collateral HouseAccounts Source Global Custodian Source The Banker May 2008
Trustee

*".2(''<#(
#$" -:-$"'2 % & !  %#
( 0" >" '% #! %* .$"#1
Philippines '!2 %*$
|lobal Investor Survey '('(" '%
Weighted Category, 2008 and
Asia Pacific Power Deal of the Year 2009 Top custody house for 2008-2009
Unweighted Category, 2009
HSBC acted as Mandated Lead Arranger,

Source Project Finance
ffshore International
Collateral Trustee, Accounts Source Global Investor Magazine Source P@S Group
Trustee

?|(##%< /&
0#(!! ?|(##%< /& ?|(##%< /& !#$

A-! ".%2#4
#!" '%$& A-! ". A-! ".%2#4
%2#4
|  `    |  `   
 
      |  `     
     
!""$  
      !""#
!""#
Source Greenwich Associates Source Greenwich Associates Source Greenwich Associates


<(2$//'!2#$ |!'! ()#"$& !  %#$

|(##%< /& -(0#.8 $  '%#. -(0#.8

? ()#"#%#"(" '% % 4#2%/'1#7%$-(%/# #$"5'(
0#(!! #(0 /#$
'1% #$9 #$"5'(%%'0" 0#('2-/"$%2 "(-/"-(#22#$
? ()#"#%#"(" '% %%"#(#$"
"##( 0" 0#$ #$" %*!#!#/"('% /(2 %*!"5'(1
7-$#($B:C1 '9
$  '%#. -(0#.@
|(##%< /& -(0#.@ #$"
0#(!! #(0 /#
? ()#"#%#"(" '% % #(0 /#$ #$"'(%%'0" 0#('2-/"%2 "(-/"-(#22#$
? ()#"#%#"(" '% %%"#(#$"
"##( 0" 0#$ #$"( 1#(')#( %* #(0 /#$'($ %! #%"$
? ()#" &(# %%"#(#$"
"##( 0" 0#$

mIn particular, the bank was able to deliver all-in financing packages for cross-border borrowers with bundled swaps, sometimes at levels inside
international funding costs. HSBC led 86 cross-border deals in local currencies worth $3.1 billion, which was more than three times the number
and almost twice the value of its closest rivals.
It ranked first in the Asian domestic currency league tables, top in the individual markets of Hong Kong, Indonesia, Malaysia, Philippines and
#$" '/! Singapore, and out-ranked its nearest competitor in six of the region¶s major markets. HSBC¶s diverse spread of business and its wide
-((#%/.'%2
'-$# geographical penetration defies any criticism that it relies too heavily on its natural Hong Kong home-base. In fact, it led local currency deals for
issuers from 21 different nations, with a range of structures«´

R %&   !""

mIts emerging markets credentials were fully on display as it was engaged in the most significant theme of regional @CM in the year: the
emergence of domestic debt.
At a time when the US investment banks were finding it tough to survive, let alone compete, HSBC benefited from a flight to quality ± in terms of
counterparty risk appetite ± and an increase in business due to its stable and very local business model.
'1#$" /'%2 @eals in Malaysian ringgit from State Bank of India and in Thai baht from Kexim pay testament to the strength of its swap desks in those countries.
'-$#'5"&#6#( It is the lubricant in the machine that enabled HSBC to offer a full range of funding options throughout Asia. In 2008, that combination proved vital
as the US dollar bond market suffered from severe dislocation.´
'R %&   !""


<(2$//'!2#$ |!'! ()#"$& !  %#$

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"#$ %"#(#$"
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|D#%'1 %"#2 ('2-/"$
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('2-/"$ ('2-/"$
Best verall Provider
#$"
0#(!!('0 2#( Broadest Product Range
Broadest Product
Broadest Product Range Range Best Ideas and Most
Best Ideas and Most Innovative Products
Best Structuring
Innovative Products Capabilities Best Structuring
Best Structuring Capabilities
Best Pricing and
Capabilities Execution Capabilities Best Pricing and
Best Pricing and Best After-Sales Execution Capabilities
Execution Capabilities Service Best Research and
Best Training and Market Coverage
Educational Support Best Training and
Best After-Sales Service Educational Support
Best After-Sales Service


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