PSE rules on issuance of PPP securities out in this first quarter

The country may soon see the first Public-Private Partnership ( PPP) project listing at the Philippine Stock Exchange (PSE) since the latter is already targeting to come up with the rules on this particular issuance in the first quarter of this year.

Amid the expanding pipeline of projects in the country’s infrastructure sector, listing of PPP-linked securities would provide companies additional options to raise money for their infrastructure projects.

PSE president and chief executive officer Hans Sicat said the rules on the issuance of PPP securities will be available as early as this quarter but the first actual listing of a PPP project will depend on how soon the Securities and Exchange Commission (SEC) can give its approval on this initiative.

“Basically, once the framework and actual rules are done that will mean that, by then, it will be possible to do equity funding for PPP projects. We think this will happen sometime this year,” Sicat told Business Bulletin during a conference on PPP held in Makati on Tuesday.

“The rule must be approved by SEC. There are steps in the process that we can’t control. Our own work can be done within the first quarter. Then we will have to get the public comment. After that, we have to revise then go to the SEC for final approval. I would think for this year, certainly we would launch the PPP securities,” he then specified.

Sicat said that before publishing the rules for public comments, they want to ensure that they have covered all the basis.

“We are amending the rules now. We have drafted rules. It’s PSE who drafted it. It is still internal right now,” he said.

When asked if the first PPP securities will be listed before the present administration steps down, Sicat only said “the sooner the better.”

“I don’t think that’s feasible. It depends on the approval process,” Sicat said, referring to how soon can SEC gives its decision on the proposed rules.

PSE and the government’s PPP center are now working together on this particular endeavor.

Sicat said that as of now, there have been a lot of companies who have expressed interest to know how this particular financing option would work.

“There are some discussions going on. People are asking us what this is about. People are asking how it will work. So I guess the response so far is positive,” Sicat said, adding that

It was in September last year when the PSE announced that it is in talks with PPP center for the possibility of issuing PPP securities and the capability of PPP participants to tap the capital markets.

Since then, PSE chief operating officer Roel Refran said the two parties have already conducted at least three joint major conferences discussing the feasibility of this initiative.

Refran said that in April, there will be another major conference on PPP securities and this is open to the public.