NO COMPANY has joined the Securities and Exchange Commission’s (SEC) Financing Agribusiness through Responsible Market Solutions (FARMS) program since its launch in 2023, the commission said.
“There is currently no company that has availed of the SEC FARMS program since its launch in 2023. However, the commission has seen a growing interest from the sector, with one agribusiness already expressing its interest in availing of the program,” the SEC Markets and Securities Regulation Department said in an e-mailed reply to questions on Tuesday.
“We [are] focusing on building a strong foundation for the program by raising awareness, strengthening partnerships, and ensuring that the program’s benefits are well-communicated and accessible to qualified agribusinesses,” it added.
Formalized under SEC Memorandum Circular No. 8, Series of 2023, the FARMS program allows agribusiness companies to raise up to P500 million per project, with a 28-day review period from filing.
Under the memorandum, a corporation must be specifically established for agri-based projects and register securities not exceeding P500 million per project, either through a single registration or a series of registrations. Proceeds from the sale of registered securities must not exceed 50% of the total project cost.
To qualify for the program, companies must have secured seed money equivalent to the remaining 50% of the total project cost.
If the project has already begun, the company must report its completion percentage and show that available funds amount to at least half of the total project cost.
The SEC said it aims to boost participation in the FARMS program by encouraging more agribusinesses and micro, small, and medium enterprises (MSMEs) to tap capital markets. These efforts include offering a 50% discount on securities registration fees valid until June 30 next year, implementing the “Call a Friend and Engage with SEC” (CAFE SEC) program that provides consultations to assist with regulatory filings, and conducting webinars and seminars to promote financial inclusion and access to capital for rural and agricultural enterprises. — Alexandria Grace C. Magno
