The Securities and Exchange Commission (SEC) of the Philippines could allow listing project bonds to cover infrastructure projects, which were not delivered via the public private partnership (PPP) model.

According to sources, SEC Chairperson Teresita J. Herbosa and BDO Capital Investment Corp. President Eduardo V. Francisco have separately announced the possibility of project bond for non-PPPs infrastructure projects.

Ms. Herbosa said that in addition to PPP bond issuances, the Philippines' SEC is conducting a study to evaluate the possibility of listing project bonds to finance non-PPPs infrastructure projects. She commented:

“Advisers from Treasury of the US and FINEX (Financial Executives Institute of the Philippines) headed by Mr. Francisco as well as PDEx headed by (Chairman and Chief Executive Officer) Mr. (Cesar B.) Crisol would form a committee together with our people to study project bonds or PPP bonds.”

Additionally, Mr. Francisco stated that discussions with the Philippine Stock Exchange (PSE) included the possibility of expanding the coverage of the listing framework to finance non-PPPs.

In June 2016, we announced that the Philippine Stock Exchange (PSE) had taken its first step towards opening the equities market to support infrastructure growth in the country with the publication of its draft public-private partnership (PPP) supplemental listing and disclosure rules.

During this month we have reported that the IFC will be the co-advisor with the Development Bank of the Philippines (DBP) to the Department of Transportation of the Philippines for the structuring and tendering of the PPP components of the Cebu Bus Rapid Transit project.  

Also in July, we announced that Philippine conglomerate San Miguel Corporation bought the remaining 49% of Universal LRT Corp Ltd. and all the shares in ULCOM Co. Inc, its partners in the development of the Manila LRT 7 PPP project.