Toyota Financial Services Philippines Corporation (TFSPH), the financing and leasing arm of GT Capital Holdings, has entered the Philippine debt market with a maiden bond offering worth P2 billion, aimed at broadening its funding sources and supporting asset growth.

Launched on 6 October 2025, the offering consists of two tranches: two-year Series A Bonds due 2027 with a fixed interest rate of 5.7725 percent, and three-year Series B Bonds due 2028 carrying 5.9418 percent. Proceeds will be used to diversify funding and attract a wider investor base, including both institutional and retail investors.

First Metro Investment Corporation and ING Bank N.V. Manila Branch serve as joint lead arrangers and bookrunners, with Metrobank and BPI Capital also tapped as selling agents. The offer period runs until October 13, 2025.

Highest possible credit rating

TFSPH recently earned the highest possible credit rating of PRS Aaa (corp.) with a stable outlook from the Philippine Rating Services Corporation (PhilRatings).

According to PhilRatings, the rating reflects “TFSPH’s strong and highly supportive shareholders; the solid franchise of the Toyota brand; the company’s good asset quality; and its sustained revenue growth supported by loan portfolio expansion.”

In the first quarter of fiscal year 2025, TFSPH reported an 11 percent increase in revenues to P3.9 billion and a 9 percent expansion in loan receivables to P159.4 billion, while net interest income for the period reached P1.6 billion.

TFSPH is 60 percent owned by Toyota Financial Services Corporation of Japan and 40 percent by GT Capital. The firm finances Toyota vehicle sales in the country while delivering a suite of financial products designed for Filipino consumers.

The bond issuance underscores GT Capital’s ongoing push to strengthen its financing arm while leveraging the global Toyota brand to sustain growth in the local automotive market.