Global: SEC, World Bank Move to Strengthen Philippines’ Corporate Bond Market and Expand SME Financing

The Securities and Exchange Commission (SEC) is advancing a series of reforms aimed at deepening the Philippines’ corporate bond market and improving access to long-term financing for small and medium enterprises (SMEs). The initiative is being undertaken in partnership with the World Bank and the International Finance Corporation (IFC) through the World Bank Group’s Joint Capital Markets Programme (J-CAP).

From November 11 to 13, the SEC hosted the Workshop on Corporate Bond Market Development and Capital Market Solutions for SMEs, a forum designed to share initial market assessments and outline a roadmap for strengthening the country’s domestic debt ecosystem.

Building a More Efficient and Inclusive Debt Market

Across the sessions, experts highlighted the need for:

• More diversified financing instruments tailored to corporate and SME needs

• Upgraded market infrastructure to support liquidity and transparency

• A long-term strategy to broaden participation and deepen issuer diversity

The discussions underscored that while the Philippines has made progress in market development, gaps remain in enabling efficient fundraising and ensuring SMEs have viable pathways to tap capital markets.

J-CAP as a Neutral Platform for Reform

SEC Chairperson Francis Lim emphasised the importance of the collaboration with the World Bank Group under J-CAP:

“The SEC has actively engaged with our partners from the World Bank Group under J-CAP to explore instruments and policy measures that can accelerate capital market development.”

He added that testing proposed solutions against real market dynamics and understanding participant readiness offers critical insight to address constraints and unlock new opportunities.

Next Steps: Strengthening Coordination and Legislation

Following the workshop, the SEC confirmed plans to convene an exploratory meeting with the J-CAP team, the Department of Finance, and the Bangko Sentral ng Pilipinas (BSP). The aim is to evaluate potential legislative and policy reforms that could improve market efficiency, harmonise regulatory oversight, and reinforce the foundations of a more vibrant corporate bond market.

The initiative signals a coordinated commitment to developing a stronger, more resilient Philippine capital market—one that supports corporate growth, broadens access to funding, and strengthens the country’s financial ecosystem.