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Singapore Facilitating Cross-Border Capital Raising In ASEAN

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Open Eyes Opinion {source: SGgov}

Facilitating Cross-Border Capital Raising in ASEAN

Kuala Lumpur, 3 March 2015… The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) today jointly signed a Memorandum of Understanding (MOU) with the Securities Commission Malaysia and the Securities and Exchange Commission, Thailand to establish a Streamlined Review Framework for the ASEAN Common Prospectus.

The Framework, which is an initiative under the ASEAN Capital Market Forum (ACMF) Implementation Plan endorsed by the ASEAN Finance Ministers, will facilitate cross-border offerings of Equity Securities and Plain Debt Securities(*) in ASEAN.

2. Under the Framework, the review process for a multi-jurisdiction offering of Equity Securities or Plain Debt Securities will be streamlined, as long as the Prospectus is prepared in accordance with the ASEAN Disclosure Standards.

The Framework requires both Home and Host Authorities to complete the review process at the same time, within three to four months from the date of submission.

This will enhance market efficiency as the time taken for the issuer to obtain approval to offer its securities in multiple jurisdictions would be shortened, providing more certainty to the issuer in terms of the time-to-market.

3. Malaysia, Singapore and Thailand are the first three jurisdictions to sign the MOU.

Securities regulators in other ASEAN jurisdictions will participate in the Framework when they are ready.

ASEAN exchanges with a substantial role in reviewing listing applications may also sign the MOU along with the securities regulators in their jurisdictions.

4. The signatories to the MOU target to implement the Framework by the third quarter of 2015.

They will jointly issue a handbook to provide guidance on the various administrative and procedural matters including the criteria for issuers, the application procedures and the review timeline.

 (*) The Framework will apply to offers of shares and plain debt securities as defined in the ASEAN Disclosure Standards.

5. Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, said, “The MOU represents another progressive step towards regional capital markets integration.

ASEAN issuers will benefit from the streamlined review process that will make it easier to raise capital across ASEAN countries.”

6. Mr Magnus Bocker, Chief Executive Officer, SGX, said, “The need for infrastructure investments in Southeast Asia will multiply with the region’s economic development.

Today’s agreement will pave the way for ASEAN companies to more efficiently raise funds for their investment and expansion, while investors will have easier access to more opportunities.”

7. More information on the ACMF Implementation Plan and the ASEAN Economic Community Blueprint 2015 can be found at http://www.theacmf.org/ACMF/report/ImplementationPlan.pdf and http://www.asean.org/archive/5187-10.pdf.

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