SEC launches Sukuk framework
The Securities and Exchange Commission (SEC) has formally rolled out the country’s regulatory framework for Sukuk, marking a key step in its push to broaden the Philippine capital market by attracting Shari’ah-compliant investments while simultaneously updating financial reporting rules to align with global standards.
The SEC, together with the Asian Development Bank, launched the Guidelines on the Issuance and Disclosure of Sukuk last July 15.
The guidelines, implemented through SEC Memorandum Circular No. 12, Series of 2026, establish the regulatory framework for Sukuk issuances, covering registration, permissible structures, disclosure obligations and reporting requirements.
Sukuk are certificates of equal value representing undivided investment interests or rights in underlying assets, usufructs, services or projects that comply with Shari’ah principles. Unlike conventional debt securities, Sukuk are structured to meet Islamic finance requirements.
“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 Chair Francis Lim said.
Under the guidelines, issuers may structure Sukuk using Shari’ah-compliant arrangements and other structures approved by the Commission.
The rules likewise allow the creation of special purpose entities for Sukuk issuances.
