MANY Philippine companies are front loading their borrowing program amid the global financial crisis, the Bank of the Philippine Islands (BPI) said.

Adelbert Legasto, BPI Asset Management executive vice-president, said that as of February, the lender had a mandate of P370 billion, adding the preference has shifted from short-term to medium and long-term debt instruments.

“A lot of the corporate needs have been front loaded. Many would like to make sure [they have] the flexibility to move around and continue with their programs for the rest of the year by getting their funding at the start of the year,” Legasto told reporters.

In the first four months of the year, several companies have already sold debt-papers, including SM Investment Corp.’s (SMIC) $350 million, Manila Water Co. Inc.’s P4 billion, and Globe Telecom Inc.’s P5 billion bond issuance.

In the pipeline are Banco de Oro Unibank’s Tier 2 notes issuance worth P3 billion, Security Bank and Trust Co.’s Tier 2 issuance worth P3 billion, Rizal Commercial Banking Corp.’s Tier 2 worth P4 billion, state-run Home Guaranty Corp. and National Home Mortgage Finance Corp.’s P1.86-billion bond offering and Aboitiz Power Co.’s P2 billion offering.

Last week, San Miguel Brewery Inc. raised P38.8 billion in what it claims was the country’s biggest peso-denominated debt-paper sale. This was P500 million more than the programmed P38.3 billion.

SMIC also announced that it will issue fixed-rate bonds of up to P10 billion next month, with the proceeds earmarked for various expansion projects of SM and for general corporate purposes.

The announcement of SMIC came a day after its mall unit, SM Prime Holdings Inc. completed a P5 billion notes facility.

This year, SM Prime plans to open malls in Camarines Sur, Cavite, Las Piñas, and the Sky Garden at SM City North Edsa. The company is also set to expand SM City Rosales in Pangasinan.