The Securities and Exchange Commission is making it faster for energy companies to register their securities in order to speed up the process for their fund-raising activities in the capital market.
“The general concept is to make it easier for them to comply with the process. We will have a dedicated staff. (It’s better than) just passing through the regular process,” said SEC commissioner Javey Paul D. Francisco during the EJAP-Aboitiz Power Renewable Energy Forum.
To achieve this, he said the commission will launch SEC POWERS (Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services) next year to simplify the registration of securities for power generation companies and distribution utilities.
“Under the guidelines, the SEC Markets and Securities Regulation Department (MSRD) shall complete the review of the registration statement of such companies within 45 days from filing, in accordance with the requirements of the Securities Regulation Code (SRC); the Revised Corporation Code of the Philippines; and pertinent issuances of the SEC,” Francisco said.
The guidelines are in line with the Electric Power Industry Reform Act of 2001 (EPIRA) which mandates power generation companies and distribution utilities to offer and sell at least 15 percent of their shares to the public.
The guidelines also waive the minimum public float requirement of 20 percent for listed companies, in favor of the 15 percent minimum requirement under EPIRA.
“The simplified procedure is expected to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors, as provided under the EPIRA Law,” said Francisco.
He added that, “We will be officially launching these guidelines soon, together with our counterparts from the Energy Regulatory Commission (ERC), to further promote the initiative to covered companies.”
“Here at the SEC, we reiterate our commitment to the government’s efforts in promoting renewable energy by enabling their growth.
“Access to capital and fostering investment flows are crucial in allowing companies to expand and transition to more renewable power sources.
“This will allow companies to reach and provide electricity to more far-flung areas in the Philippines, thereby improving the quality of life of our fellow Filipinos and ensuring that they too, will be able to participate in and contribute to the country’s development,” said Francisco.