THE Philippine Stock Exchange Inc. (PSE) has released its first draft of the public-private partnership (PPP) supplemental listing and disclosure rules, a move seen as a first step toward opening the equities market to support infrastructure growth in the country.
The PSE is asking stakeholders to comment on the proposed rules for PPP infrastructure-project companies.
“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,” PSE Chief Operating Officer Roel Refran said.
The PSE said the set of rules is a product of a series of consultations with various stakeholders, including the participants of the discussions organized by the PPP Center, together with the PSE, Securities and Exchange Commission 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 are the easing of the track record and operating history requirements, stipulating the PPP contract must have at least 15 years of remaining period of effectivity, setting a minimum project cost of P5 billion, and requiring 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 said.
The proposed rules may be downloaded through the PSE web site.
Stakeholders have until June 17 to submit their comments to the PSE. The comments will be considered in finalizing the PSE’s Supplemental PPP Listing and Disclosure Rules that will be submitted to the SEC for approval.