Lombard loans in Philippines.
Private credit against Philippines-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against Philippines-listed shares is credit secured by a pledge of equity listed on the PSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the PSE (PSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in PHP or cross-currency.
- Structured under the SEC (PH) regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal Philippines venue: Philippine Stock Exchange (PSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in Philippines are regulated by Securities and Exchange Commission (Philippines) (SEC (PH)). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in PHP or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | Philippine Stock Exchange (PSE) |
|---|---|
| Regulator | Securities and Exchange Commission (Philippines) (SEC (PH)) |
| Currency | PHP (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | PSEi (PSE Composite Index) |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a Philippines-listed position?
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Disclosure and regulation
Philippine-listed shares fall under the Securities and Exchange Commission, whose Securities Regulation Code (Rule 18.2) requires disclosure at 5%, with the tender-offer rules engaging at 35%. That 35% level is the figure a large holder watches: it marks the point at which adding to a position can compel a mandatory offer to other shareholders. A Lombard loan is a pledge rather than an acquisition, but it is arranged with the tender-offer threshold in view so that neither the security nor an enforcement is read as crossing it. Foreign-equity ceilings in regulated sectors add a second consideration, since they limit who may come to hold the shares.
An illustrative example
Consider a private holding of PHP 800 million in a PSEi constituent — often one of the family-controlled conglomerates or an infrastructure issuer that dominate the index. At an illustrative loan-to-value of 45% — within the disclosed 20–65% range, reflecting a mid-tier market and a concentrated index — the facility releases roughly PHP 360 million while the shares remain pledged and owned. Funding can be drawn in PHP or on a cross-currency basis, and where the issuer sits in a sector with a foreign-equity ceiling the enforcement route is settled in advance. Dividends and the upside stay with the holder.
Illustrative only — not an offer, a quotation, or a commitment to lend.