Philippines Advances Islamic Finance Market with Sukuk Framework Launch

The Securities and Exchange Commission (SEC) on Monday said it is advancing the development of the country’s Islamic finance market through the launch of Sukuk framework. In a news release, the SEC said the Guidelines on the Issuance and Disclosure of Sukuk were introduced in partnership with the Asian Development Bank (ADB) during a forum, “Shaping the Future of Finance: Philippines Sukuk Framework Launch,” held last July 15. Sukuk refers to certificates of equal value representing undivided investment, interest in, or rights to the underlying assets, usufructs, and services or projects undertaken in accordance with Shari’ah principles. Implemented through Memorandum Circular No. 12, Series of 2026, the SEC said the guidelines provide the regulatory framework for Sukuk issuances, including rules on their registration, permissible structures, and reporting and disclosure requirements of issuers, among others. “Our vision is simple: a Philippine capital market that is deeper, broader, and more inclusive—a market where every legitimate source of capital can find a place, and every investor can participate with confidence. Islamic finance is part of that vision,” said SEC chairperson Francis Lim. “For many investors, financial decisions are shaped not only by economic returns, but also by faith, values, and ethical principles. Our markets must be ready to serve them as well. Together, let us expand opportunities, deepen our capital markets, and finance a more prosperous Philippines,” said Lim. The corporate regulator said the guidelines allow Sukuk issuances to be made using Shari’ah-compliant structures and other Sukuk structures that may be approved by the Commission, as well as the creation of special purpose entities for Sukuk issuances. It also provides the disclosure obligations of Sukuk issuers. The issuance of the Sukuk guidelines builds on the active Islamic finance landscape with a total of 58 Shari’ah-compliant securities currently listed on the Philippine Stock Exchange and Philippine Sukuk totaling USD 1 billion issued by the Philippine government in 2023, according to the SEC. —AOL, GMA News