Confidential Enquiries · Institutional Counterparties Only
Asia-Pacific One Exchange SEC (PH) Regulated PHP

Stock Loans Against Philippines-Listed Equity

Institutional securities-backed lending against shares listed on Philippines’s principal equity exchanges — for controlling shareholders, founders, and family offices holding positions on the SEC (PH)-regulated market.

01 · The Country
Asia-Pacific

Philippines equity markets.

The firm structures stock loans against shares listed on Philippines’s one principal cash equity venue. The instrument allows founders, family offices, controlling shareholders, and concentrated single-stock holders to release liquidity against their Philippines-listed position — without selling, and without disturbing voting control or the share register. Beneficial ownership remains with the borrower throughout. The full position is recovered on repayment.

Indicative terms are calibrated to the specific position. Loan-to-value is set against the underlying’s single-stock liquidity and free float. Tenor typically runs twelve to thirty-six months for institutional transactions. Recourse profiles span non-recourse, limited-recourse, and full-recourse — chosen against the borrower’s downside-protection objectives. Loans can be denominated in PHP or in cross-currency structures (USD, EUR, GBP, or another major currency) depending on the borrower’s redeployment requirements.

Philippines stock loans at a glance:

Listed venuePhilippine Stock Exchange (PSE)
RegulatorSecurities and Exchange Commission (Philippines)
CurrencyPHP, with cross-currency options
Principal indicesPSEi (PSE Composite Index)
Tenor12–36 months (institutional)
Recourse profileNon-recourse, limited-recourse, or full-recourse
Loan-to-valueCalibrated per position

Regulatory references for any specific transaction are mapped at the structuring stage with the borrower’s chosen counsel. The information above is published for general orientation and is not legal advice.

In Depth
Regulatory & Structuring Detail

On this market, specifically.

Disclosure and regulation

Philippine disclosure under SRC Rule 18.2 is triggered at 5%, and the tender-offer regime engages at 35%, so a pledge over a sizeable line is tested both for the ownership notification and for whether an enforcement transfer could pull a lender toward the tender-offer threshold. The structural overlay is the constitutional and statutory foreign-equity ceiling that applies in regulated sectors, which limits how much of certain issuers non-residents may hold. The firm confirms the applicable foreign-equity ceiling, the holder’s headroom, and the 35% tender-offer perimeter alongside the SEC notification profile before the security over a PSE-listed position is granted.

An illustrative example

As an illustration only, a holder owns PHP 1.5 billion of a PSEi conglomerate. At a loan-to-value of 45%, within the disclosed 20–65% band, the pledge releases roughly PHP 675 million while the shares stay registered to the holder and voting is retained. Funding can be arranged in PHP or, for cross-border holders, in USD. The figures are round and hypothetical, used only to show the mechanics; the actual ratio would follow the line’s free float and volume, any sector foreign-equity ceiling, and the recourse profile. This is not a quote, an offer, or a commitment to lend.

Illustrative only — not an offer, a quotation, or a commitment to lend.

03 · FAQ
Philippines Stock Loans

What people most often ask about Philippines.

Q · 01 What is the typical loan-to-value for a stock loan against PSE-listed positions?
LTV on PSE is calibrated to the specific position. The principal drivers are the underlying’s free float, average daily trading volume, volatility, and the borrower’s regulatory profile. For a large-cap, high-volume PSE name, LTV is materially higher than for a thinly-traded or recently-listed position. A non-recourse structure runs at lower LTV than a full-recourse structure on the same underlying. Indicative ratios are issued only after a review of the specific PSE position; there is no published rate sheet.
Q · 02 Which PSE-listed segments are eligible for stock loans?
Eligibility is assessed case by case. The firm considers positions across the segments operated by Philippine Stock Exchange: Main Board; SME Board; Dollar Denominated Securities Board. Higher-tier (premium / large-cap / main-market) segments are typically more straightforward to structure than growth / SME segments, principally because of free-float and liquidity differences.
Q · 03 In which currency can a PSE stock loan be denominated?
The default is PHP, the listing currency. Cross-currency structures, for example, financing a PHP-denominated PSE position with a USD or EUR loan, are common and routinely available. The cross-currency element introduces hedging, settlement, and tax considerations that are addressed in the documentation.
Q · 04 Are there foreign-ownership constraints on PSE-listed shares relevant to a pledge?
Foreign-ownership rules vary by issuer and by sector on PSE; regulated sectors (banking, telecoms, defence, natural resources, and others) commonly carry ownership caps and notification requirements that interact with collateralised structures. The firm’s structuring review addresses these expressly for any specific position.
04 · Other Asia-Pacific
Adjacent Markets

Countries adjacent to Philippines.

Hong Kong · Japan · China · South Korea · Taiwan · Singapore · Australia · New Zealand · India · Thailand · Indonesia · Malaysia · Vietnam

All countries →

A specific Philippines position to discuss?

Submit a confidential enquiry. A senior principal will respond within one business day.