PDS to set rules on project bonds

The Philippine Dealing System (PDS) Group, the holding firm for fixed-income trading platform Philippine Dealing and Exchange Corp. (PDEx), will come up with guidelines on how  Public Private Partnership (PPP) projects can issue bonds to add to their financing.

“The financing requirements for our national infrastructure program are challenges thrown to the local capital market, to prove itself capable to fulfill the role as a rich and practical alternative funding resource,” said Cesar Crisol, PDS president.

Cristol also compared the PDS’ PPP rules to that of the Philippine Stock Exchange (PSE). Earlier, the PSE relaxed its listing rules to accept initial public offering from PPP firms.

“This event is part of our initiative to support the government’s commitment to establish the ‘golden age for infrastructure,’ its key to spur economic development and job creation,” Crisol said.

In addition, the PDS president said that a huge opportunity is presented by PPP for the capital market with 2017 alone having a record-high P891 billion or 5.2 percent of the country’s gross domestic product is allocated for infrastructure.

Ephyro Luis Amatong, Securities and Exchange Commission (SEC) commissioner, said the PDS is already trying to build consensus among industry players on the best possible ways to raise funds and list these securities at the Philippine Dealing and Exchange Corp. (PDEX), the fixed-income trading platform.

“Not everybody is at the same level. What we are  doing is that all parts of the financial institution has a role,” Amatong said.

 

Source: Malaya Business Insight