THE Philippine Stock Exchange Inc. (PSE) has signed a memorandum of agreement (MoA) with the Public-Private Partnership (PPP) Center that will enable information sharing by both entities to facilitate the processing of listing applications from firms handling PPP projects.
The PSE and the PPP Center signed the MoA on Monday, which was followed by the ringing of the opening bell at the exchange.
The exchange said a PPP listing forum was also conducted to further explain the rules to stakeholders interested in the listing of PPP securities.
“As you know, other territories have had this fund-raising mechanism for some time. While we are only catching up, the timing is also very ideal given government’s stance on PPP projects, as it committed to accelerate infrastructure spending,” PSE Chairman Jose T. Pardo said in his opening remarks during the bell ringing ceremony.
“And with several PPP projects in the pipeline, we hope to see PPP companies tap the stock market for their capital raising exercise,” Pardo said.
The PPP Listing Rules were approved by the Securities and Exchange Commission in November last year.
Based on the rules, projects under the government’s PPP scheme should first complete a phase of the project before a concessionaire can apply for listing under the PPP securities program. This is intended to protect investors from risks arising from delays in PPP processes.
Also, companies that are awarded a PPP contract may raise funds from the capital market only when said company is already realizing cash flow and revenues.
Rules for PPP securities may be accessed at the PSE website.