Lombard loans on the PSE.
Private credit against Philippine Stock Exchange-listed shares — pledged, not sold.
A Lombard loan against PSE-listed shares is credit secured by a pledge of equity listed on the Philippine Stock Exchange. The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the Philippine Stock Exchange (PSE), Manila (Bonifacio Global City).
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in PHP or cross-currency.
- Structured under SEC (PH), with disclosure from 5%.
The venue
The Philippines' sole equity exchange. A focused index with significant concentration in conglomerates (the so-called family business groups) and infrastructure issuers; foreign-equity ceilings in regulated sectors shape eligibility for non-resident collateralisation.
Regulator and disclosure
The Philippine Stock Exchange operates under Securities and Exchange Commission (Philippines) (SEC (PH)). SRC Rule 18.2: disclosure required at 5%; tender-offer rules engage at 35%. A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against PSE-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in PHP or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | Philippine Stock Exchange (PSE) |
|---|---|
| City · Country | Manila (Bonifacio Global City) · Philippines |
| Regulator | Securities and Exchange Commission (Philippines) (SEC (PH)) |
| Disclosure | From 5% |
| Principal indices | PSEi (PSE Composite Index) |
| Segments | Main Board; SME Board; Dollar Denominated Securities Board |
| Currency · Tenor | PHP · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the PSE?
Request terms →See also the country overview: Lombard loans in Philippines.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The PSEi, the composite index of the Philippines’ sole exchange, is a focused benchmark dominated by a small number of family-controlled conglomerates and infrastructure issuers. That concentration cuts two ways for collateral: the index names are genuinely liquid and well-followed, but a great deal of each company can be closely held, so free float rather than market capitalisation is the truer guide to how much can be financed. A Lombard loan favours the well-floated index constituents; the SME board and the dollar-denominated segment carry thinner lines. The size of a holding against its own daily turnover, as ever, governs the advance rate.
Structuring notes
Structuring on the PSE attends to two thresholds. The tender-offer rules engage at 35%, so for a client whose holding already sits near a control level the pledge and its enforcement are documented so as not to be construed as an acquisition that would compel a mandatory offer. Foreign-equity ceilings in regulated sectors mean that, on enforcement, the shares can pass only to holders who keep the company within its permitted foreign proportion, so the enforcement route is agreed at the outset. The pledged shares are held with a qualified custodian on bankruptcy-remote terms, and disclosure at 5% is monitored throughout.