The Philippine Stock Exchange (PSE) has drafted a new framework that seeks to encourage the listing of companies driven by infrastructure projects under the public-private partnership (PPP) program.
This is the first step in opening up the equities market to support the growth of big-ticket PPP-driven infrastructure projects in the country.
“We recognize the need for PPP companies to have funding options available to them. We hope that by enhancing our listing rules for infrastructure companies, PPP firms will consider raising capital through the stock market. In doing so, both the PSE and our investor base will serve as conduits in the country’s economic growth,” said PSE chief operating officer Roel Refran.
The set of rules is a product of a series of consultations with various stakeholders, including the participants of the roundtable discussions organized by the PPP Center together with the PSE, the Securities and Exchange Commission (SEC) and the Asian Development Bank.
“Aside from the consultations with local and foreign stakeholders, we also looked at our peers in the region to see how they implemented such rules for infrastructure project companies. Drawing from their experience, we came up with rules that would be most effective and beneficial to our prospective PPP listing applicants,” Refran said.
Among the salient items in the proposed rules include the easing of the track record and operating history requirements, requiring that the PPP contract must have a remaining effectivity period of at least 15 years, a minimum project cost of P5 billion and other additional disclosures applicable to PPP companies.
“Infrastructure is included in the incoming administration’s eight-point agenda. We expect this stance to open up more opportunities for PPP companies to address the pressing need for more infrastructure investments. With these rules, we hope that we can help contribute in building more public highways, airports, power plants and other important infrastructure for our country,” Refran added.
The draft PPP supplemental listing and disclosure framework has been released to allow stakeholders to share their feedback. This can be downloaded through the PSE website (www.pse.com.ph). Stakeholders have until June 17 this year to submit their comments to the PSE. The comments will be considered in finalizing the framework to be submitted to the SEC for approval.