In an effort to cushion the blow on business enterprises during the onslaught of the COVID-19 pandemic, the Securities and Exchange Commission issued new guidelines for the creation of a corporate debt vehicle (CDV) which will enable large corporations and medium-sized businesses to secure indispensable funding to maintain liquidity during these unpredictable times.
In the Lexology article entitled: “Stimulating the Market in the Time of COVID-19: An Introduction of Corporate Debt Vehicles in the Philippines,” V&A Law’s
Maria Concepcion P. Simundac,
Raymond John S. Cheng, and
Winona Maraiah M. Fajardo examine the new rules on CDVs and discuss the minimum requirements for the registration and issuance of a CDV, permissible transactions, and investment limitations, among others.
