The Securities and Exchange Commission (SEC) approved last week the grant of a provisional license to PCD to operate as a depository for debt securities.
The commission cited pertinent provisions in PCD’s Rule 3.3 which show that it can effectively provide and perform the needed depository services for debt securities, including the generation of the list of the beneficial owners come interest and maturity payment dates and the delivery of fund transfer instruction to the settlement bank.
The PCD had requested for the license since it has been designated as the central securities depository for certain fixed income instruments like the IMP bond and the Ayala Land Inc. (ALI) bond, to name a few.
The IMP board refers to the six-year zero-coupon bond that will be issued by the government of the Philippines to finance the Internal Revenue Allotment Monetization program which was approved under former President Estrada and carried over to President Arroyo.
The proceeds, amounting to about P6 billion, will be distributed to the 44,000 local government units (LGUs) nationwide. The bond was scheduled for auction yesterday to be participated in by two government banks (Development Bank of the Philippines and Land Bank of the Philippines) as competing underwriters. – Conrado Diaz Jr.