Financing the future: Public markets as a path to shared growth

Twenty years ago, I began my diplomatic journey in the Philippines as Second Secretary Political, Press and Public Affairs. I was immediately struck by the country’s energy, talent and global ambition.  Now, in 2025, I return to an equally vibrant nation. Its economy is a testament to resilience and progress, having overcome global financial crisis and pandemic to emerge stronger and more dynamic than ever before.

Yet, even as the Philippines continues to make progress, it faces a challenge shared by countries around the world: financing the infrastructure, services and innovation that are needed to meet the Sustainable Development Goals.

Meeting these goals, such as access to clean water, expanding renewable energy and building resilient infrastructure, requires substantial investment. The United Nations estimates that $6.4 trillion (P375 trillion) is required annually through to 2030. The scale of funding far exceeds what national budgets can provide.

The solution lies in unlocking the power of public markets: mobilizing long-term private finance at scale, while allowing citizens to become direct shareholders in their country’s prosperity.  More than $250 trillion flows through global stock and bond markets every year. That’s 20 times the value of all private equity and venture capital combined. That’s 100 times the balance sheets of all the multilateral development banks put together. If we direct a fraction of this toward emerging markets, the impact would be transformational.

Public markets are where citizens, companies and investors converge to fund national ambition. They enable the public – through pooled savings, pensions and mutual funds – to connect with companies looking for capital to innovate, grow and deliver projects which support the national development agenda.

The UK has long championed public markets as a force for sustainable and inclusive growth. And few cities illustrate the transformative power of public markets better than the City of London.

As one of the leading financial centers, London stands as a global hub for innovation, green finance and transparent capital markets, demonstrating how well-regulated public markets can mobilize investment while upholding standards of governance and accountability.

From hosting company listings, to pioneering green and sustainable bonds and blended finance solutions, London offers a blueprint for how financial ecosystems can support national growth agendas.

Building on this expertise, the UK and the Philippines launched a Public Markets Coalition at the UN’s Financing for Development Conference in July this year. The Coalition brings together governments, multilateral development banks, investors and public markets stakeholders to help facilitate greater public market investment in emerging economies.

The UK’s MOBILIST (Mobilizing Institutional Capital Through Listed Product Structures) program is central to this effort.

MOBILIST is bridging the gap between global capital and emerging markets by working directly with companies, exchanges like the Philippine Stock Exchange, brokers, intermediaries and issuers to develop the kinds of investment products that institutional investors are looking for. Through the program, the UK is providing equity capital and technical support to help meet the expectations of institutional investors. Crucially, these investments are made on commercial terms, demonstrating that viable opportunities exist in traditionally overlooked markets.

The UK-Philippines MOBILIST partnership has been pioneering. Since formalizing its collaboration with the Philippine Stock Exchange in July 2023, MOBILIST has already backed two transactions. The first was the $12.5-million (P733-million) anchor investment in Citicore Renewable Energy Corporation (CREC)’s IPO in 2024. This is supporting CREC to deliver enough renewable energy to power over 3.5 million homes by 2028, crucial to the clean energy transition and energy security in the Philippines.

This month, MOBILIST made a second major investment: $10 million (P586 million) into Maynilad Water Services’ IPO. This capital will support critical upgrades to water infrastructure, expanding access to clean and reliable water for communities in and around Metro Manila. With this investment, MOBILIST is not just financing one water utility. It is creating a template. It is showing how critical infrastructure can access public equity. It is demonstrating how to structure these deals with cornerstone investors. And it is building relationships between Filipino institutions and international asset managers.

I am delighted that the Philippines is the first country in the world where MOBILIST has invested in two listings. It signals the UK’s vision for a future where public markets empower citizens and drive sustainable growth, and these transactions provide two important lessons. First, innovative finance is not an abstract concept – it is already shaping real outcomes. Second, well-designed market instruments supported by sound policy can unlock investments into critical sectors, such as energy and water.

But there is more to be done. Last month, I learnt that retail participation in the Philippines remains low vis-à-vis other ASEAN countries, and many companies also still primarily rely on traditional bank financing rather than tapping equity markets.

Strengthening regulation, improving incentives and attracting new investors could ultimately increase the volume of capital available for productive investment in the country.

The UK remains a committed partner on this journey. Through MOBILIST, the UK-led Public Markets Coalition and our broader UK-Philippines economic partnership, we will continue to build an ecosystem that enables the efficient flow of funds and empowers the public to invest in their own future.

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Sarah Hulton is the British Ambassador to the Philippines.