Philippines Disclosure Crackdown Urged After Infrastructure Scandal

Philippines disclosure rules are under pressure to tighten after a corruption scandal linked to flood-control projects unsettled global bond investors, according to market sources.

Asset managers including BNP Paribas Asset Management and Robeco have called for stricter reporting requirements for state-backed infrastructure projects.

A group of 11 investors sent a letter to regulators in late March urging greater transparency on the use of proceeds from sustainable debt.

National Treasurer Sharon Almanza confirmed receipt of the request, noting the government will respond.

Around PHP168bn of sustainability bond proceeds have been allocated to flood-control initiatives, accounting for roughly 39% of total issuance, according to Bloomberg calculations.