The re-emergence of Philippine securitization (ASR 2/25/01) may be expedited soon, as the country's Senate is preparing a securitization bill that will potentially develop a wider range of securitizable assets.

Last week the Senate told BusinessWorld that its version of the bill would address securitization of future risks and receivables of the government for payment of foreign debts. The move is meant to encourage better fiscal management and comes as the government prepares to securitize the future earnings of the Malampya Gas Project through the public ABS market.

Under the bill the Senate proposes to limit the securitization of future earnings to reduce high interest debts and therefore limit the capacity the government can attempt to bring to market. The Senate is expected to pass its version of the bill by the first week of March.

The move comes in the wake of the MRT III transaction where an SPV launched $175 million in bonds backed by equity rental payments paid by the Philippine government's Department of Transportation and Communication to the Metro Rail Transit Corp. However, because of its size, the deal was executed via the private placement market. The Malampya Gas Project promises to be much bigger in size.

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