Manila Bulletin
By: Myrna M. Velasco
Published: March 15, 2013
The guidelines relaxing the track record requirements for renewable energy (RE) project companies which are intending to offer their shares to the investing public are now being finalized, according to the Philippine Stock Exchange (PSE).
PSE President Hans B. Sicat has noted that the three-year track record requirement has been shortened to one year, so it will be easier for RE firms to comply with it.
“We have relaxed the track record requirement to one year, instead of three years, so the RE companies can tap the capital market for their funding requirements,” he said.
The local bourse chief executive added that the guidelines on the stock offering of the RE companies are currently being firmed up with the Department of Energy.
He stressed that the stock market can be an alternative venue for smaller firms for cash-raising initiatives since they cannot compete with “giant counterparts” which may have recourse to their parent firms when it comes to establishing financial track record.
Additionally, Sicat indicated that they are setting the rules on the initial public offering (IPO) in the Philippines of foreign petroleum companies which are already listed in their home offices.
“We also have guidelines on the listing of foreign petroleum companies with operations here. It would be up to them to utilize that,” he said.
With the recent pronouncement of Energy Secretary Carlos Jericho Petilla that the grant of feed-in-tariff (FIT) will only happen after the commercial operation of the installed RE projects, raising financing has become a tough contest for developers opting to avail of the incentives.
The marginalized segment in this ‘game-change’ will be the start-up firms, but it is hoped that stocks listing could save them from such fund raising quagmire.
It remains a puzzle for most RE developers as to whether or not banks would be comfortable lending to their projects under the policy conditions set out by the energy department. source
PSE President Hans B. Sicat has noted that the three-year track record requirement has been shortened to one year, so it will be easier for RE firms to comply with it.
“We have relaxed the track record requirement to one year, instead of three years, so the RE companies can tap the capital market for their funding requirements,” he said.
The local bourse chief executive added that the guidelines on the stock offering of the RE companies are currently being firmed up with the Department of Energy.
He stressed that the stock market can be an alternative venue for smaller firms for cash-raising initiatives since they cannot compete with “giant counterparts” which may have recourse to their parent firms when it comes to establishing financial track record.
Additionally, Sicat indicated that they are setting the rules on the initial public offering (IPO) in the Philippines of foreign petroleum companies which are already listed in their home offices.
“We also have guidelines on the listing of foreign petroleum companies with operations here. It would be up to them to utilize that,” he said.
With the recent pronouncement of Energy Secretary Carlos Jericho Petilla that the grant of feed-in-tariff (FIT) will only happen after the commercial operation of the installed RE projects, raising financing has become a tough contest for developers opting to avail of the incentives.
The marginalized segment in this ‘game-change’ will be the start-up firms, but it is hoped that stocks listing could save them from such fund raising quagmire.
It remains a puzzle for most RE developers as to whether or not banks would be comfortable lending to their projects under the policy conditions set out by the energy department. source
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