DOF welcomes higher PH rankings in investor relations, debt transparency

Finance Secretary Benjamin E. Diokno welcomed the Philippines’ standing in the 2023 lnvestor Relations and Debt Transparency Report released by the lnstitute of lnternational Finance (llF) in June 2023.

According to the report, the Philippines ranked 3rd out of 41 countries in terms of investor relations (IR) practices. It attained an IR country score of 47.8 out of 50, which is higher by 6.4 index points compared to the previous year’s report where it stood at the 12th spot.

“The Department of Finance owes this feat to the concerted investor relations efforts of the economic team. We have been strategic in the conduct of bilateral meetings, non-deal roadshows, and investor attraction engagements such as the Philippine Economic Briefings abroad, which have given us the platform to inspire confidence in the Philippines’ strong economic performance and favorable macroeconomic fundamentals,” said Secretary Diokno.

Strong IR programs support countries’ efforts to attain stable and affordable access to international debt markets and are effective in mobilizing international private capital towards achieving global climate and sustainable development goals.

The Report highlights various lR practices across emerging markets and developing countries, and ranks selected countries with respect to adherence to standard lR practices and debt transparency metrics.

The assessment is based on three (3) scores: the IR Country Score, Debt Transparency Score, and ESG Data and Policy Dissemination Score.

Debt transparency, on the other hand, is a subset of the headline IR country score and assesses sovereign borrowers’ data and policy dissemination practices, with a maximum score of 13.

The Philippines scored 11.8, earning 2nd place from its 20th spot in the previous year. The country ranked higher than lndonesia (5th), Malaysia (14th), Thailand (17th), China (32nd), and Vietnam (34th).

Meanwhile, the Environmental, Social, and Governance (ESG) Data and Policy Dissemination ranking considers the availability of ESG data, the provision of ESG-related statistics on risk assessments, and how investor feedback is incorporated in policy decisions regarding ESG-related information sharing.

The Philippines also took a giant leap in this category from its 16th spot, placing it in 3rd place with a score of 3.9 out of 4.

The Report also cites technical recommendations to improve investor relations and debt transparency practices scores: 1) Ensure availability of policy and data documents in English; 2) Strengthen data and information transparency efforts; 3) Make ESG data and policy information available on investor relations office (IRO) websites; and 4) Enhance direct engagement with investors.

The IIF is the global association of the financial industry with about 400 members from more than 60 countries. It provides its members with global economic and financial research, advocacy, and access to leading industry events.