The Philippine Stock Exchange has issued the new listing and disclosure rules applicable to companies engaged in public-private partnership (PPP) projects, contributing to the government’s aspiration to usher in the “golden age of infrastructure.”
The new framework is seen to open up an alternative funding opportunity for PPP companies to address the country’s backlog in infrastructure such as in public highways, airports and power plants.
The local bourse published the new framework following its receipt of the signed rules from the Securities and Exchange Commission (SEC), which allow companies with PPP project worth at least P5 billion to tap the capital market for big ticket infrastructure projects.
We are excited about this new product especially as government has committed to accelerate infrastructure spending. We hope that PPP companies will now consider the equities market as an avenue for their capital raising activities. We thank the SEC, the PPP Center and other stakeholders for supporting this product,” said PSE president and chief executive officer Hans Sicat.
Under the new PPP listing and disclosure rules, the applicant company does not have to meet the required minimum three-year track record and operating history, provided that it complies with the additional listing and disclosure requirements for PPP companies.
The applicant PPP company must be a corporation which had been awarded a PPP contract with a minimum project cost of P5 billion. Likewise, the applicant company should have completed, at the minimum, a phase of the project and has commenced commercial operations and/or maintenance services depending on the nature of the contract.
“We believe that infrastructure development is critical in enhancing productivity and efficiency of various sectors of the economy. With these rules, we hope the PSE is able to contribute to the goal of sustaining the growth trajectory of the country,” Sicat added.
13 December 2016
By Doris Dumlao-Abadilla