PSE finalizes listing rules for infra companies

MANILA, Philippines – The Philippine Stock Exchange (PSE) is looking at six stock exchanges in the region that allow listing of infrastructure project companies as it finalizes its own listing rules for similar infrastructure entities.

In a recent circular on proposed listing and disclosure rules applicable to a Public-Private Infrastructure company, the PSE said there are six stock exchanges in the Asia Pacific region that have listing provisions for infrastructure projects. These are the Australian Securities Exchange, Bursa Malaysia, Hong Kong Exchanges and Clearing Ltd, Japan Exchange Group, Stock Exchange of Thailand and the Taiwan Stock Exchange.

“Among the six exchanges, Bursa Malaysia, Hong Kong Exchanges, Stock Exchange of Thailand and Taiwan Stock Exchange would be the comparable models to the PSE’s proposed PPP rules as these exchanges consider the listing of infrastructure project companies. At present, the Philippines’ legal and regulatory framework does not contemplate the listing of infrastructure funds,” the PSE said in its circular.

The PSE has released the first draft of the proposed listing rules for PPP companies.

The aim is to come up with rules that would be friendly to investors, said PSE chief operating officer Roel Refran.

“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,” Refran said.

The rules have been drafted following a series of consultations with various stakeholders, including the participants of the roundtable discussions organized by the PPP Center together with the PSE, Securities and Exchange Commission (SEC), 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 include a minimum infrastructure project cost of P5 billion; easing of the track record and operating history requirements and that the PPP contract must have at least 15 years remaining period of effectivity.

The PPP program is the Aquino administration’s flagship program for infrastructure projects such as roads, bridges and railways.

The government has awarded at least $4.2 billion worth of projects under the PPP since it launched the program in 2010.