The Philippine Stock Exchange Inc. is eyeing to make public-private partnership (PPP) securities available in the second half of the year, saying such opportunity is open to ordinary investors who may want to contribute to improve the country’s infrastructure.
In a phone interview, Roel Refran, PSE chief operating officer, said the PPP securities will be available to retail and institutional investors.
“We only have to meet and discuss with the new PPP Center Executive Director Andre ‘Raj’ Palacios, after Cosette Canilao resigned. We just have to make sure that our vision and our timeline are aligned with his,” Refran noted.
“This is actually a good investment because, besides realizing income from these kinds of investments, investors actually see tangible results – they would see their respective investments in roads, railways, bridges and even airports,” Refran said.
The PPP securities will be more attractive to retail investors, the PSE official said. Such securities are much easier to monetize in the open market like any ordinary securities compared to over-the-counter securities that are not quoted— and are relatively illiquid.
The PPP securities will be taxed at a rate similar to registered and traded stocks at one half of 1 percent.
Despite the resignation of Canilao as PPP Center chief, the PSE is optimistic that there will be no substantial delays in realizing the plan to have the securities available by the second half of the year.
“Raj is very much in the loop. I do not think there would be substantial delay in our timeline. We just have to get his inputs to ensure that it is aligned with ours,” Refran noted.
He said that pending the proposed PSE-PDS Holdings Inc. merger, the PPP securities will be offered in the form of stocks.
“Since the merger has yet to be approved, we cannot still offer PPP securities in the form of investment bonds,” he said.
PPP securities will be offered by corporations, including joint ventures and consortiums that have won PPP projects.
Among such groups are AF Payments Inc., Light Rail Manila Corp., and GMR-Megawide.