New Guidelines On Sustainability-Linked Bonds Issuance Now Available

I. Background and Scope

The Securities and Exchange Commission ("SEC") issued Memorandum Circular No. 3, Series of 2023 or the Guidelines on the Issuance of Sustainability-Linked Bonds Under the ASEAN Sustainability-Linked Bond Standards in the Philippines ("SLB Guidelines"), which contains the guidelines on the issuance in the Philippines of Sustainability-Linked Bonds ("SLBs") under the ASEAN Sustainability-Linked Bond Standards ("ASEAN SLBS") of the ASEAN Capital Markets Forum ("ACMF"). The SLB Guidelines took effect on 6 April 2023. The SLB Guidelines primarily govern the issuances of ASEAN SLBs where the proceeds are intended to be used for general purposes.

The SLB Guidelines are aligned with the ASEAN SLBS and the International Capital Market Association Sustainability-Linked Bond Principles ("ICMA SLBP"). The SLB Guidelines defined SLBs as any type of bond instrument where the financial and/or structural characteristics can vary depending on whether