The Securities and Exchange Commission (SEC) has opened a new avenue for companies to raise capital after issuing rules governing Sukuk, allowing firms to tap Shari’ah-compliant financing while expanding the country’s Islamic capital market.

The new framework, implemented through SEC Memorandum Circular No. 12, Series of 2026, establishes the rules for the registration, issuance, and disclosure of Sukuk. It also sets out the permissible issuance structures, reporting requirements, and disclosure obligations for issuers.

More inclusive capital market

“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,” SEC chairperson Francis Lim said on Saturday.

“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,” he added.

Guidelines formally launched

The SEC formally launched the Guidelines on the Issuance and Disclosure of Sukuk last week.

Sukuk are certificates representing undivided ownership or investment interests in underlying assets, usufructs, services, or projects that comply with Shari’ah principles.

They serve as an alternative financing instrument for issuers seeking to raise funds in accordance with Islamic finance principles.

Under the guidelines, Sukuk may be issued using recognized Shari’ah-compliant structures and other structures that the Commission may later approve.

The rules also allow the creation of special purpose entities to facilitate Sukuk issuances and prescribe the disclosure requirements that issuers must meet.

Strengthens Islamic finance ecosystem

The SEC said the framework strengthens the country’s Islamic finance ecosystem, which already includes 58 Shari’ah-compliant securities listed on the Philippine Stock Exchange. It also follows the Philippine government’s successful $1-billion Sukuk issuance in 2023.

The launch gathered regulators, exchanges, self-regulatory organizations, banks, Islamic banks, underwriters, investment houses, and other market participants.