New desk aims to simplify debt issuance, reduce costs and expand long-term financing options for businesses
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has established a dedicated Corporate Debt Market Desk to promote the corporate debt market and help businesses raise funds through debt instruments.
According to a statement issued on Monday, the new desk will support issuers and market participants by making the corporate debt issuance process simpler, faster and more cost-efficient.
The initiative follows Finance Minister Senator Muhammad Aurangzeb’s direction to develop a vibrant and efficient corporate debt market to diversify long-term financing options for businesses and reduce their reliance on conventional bank lending.
Desk to facilitate corporate debt issuance
A senior SECP official has been designated as the focal person for the Corporate Debt Market Desk.
The desk will facilitate public offerings and private placements of corporate debt securities, listings on the Pakistan Stock Exchange (PSX), Sukuk and other Shariah-compliant debt instruments.
The SECP has also established a dedicated Corporate Debt Market section on its website, providing market participants with access to the relevant legal and regulatory framework, market data, guidance material and contact details of the designated focal person.
The centralised facility is intended to provide issuers and investors with easier access to information and regulatory support throughout the debt issuance process.
SECP seeks to deepen corporate debt market
SECP Chairman Dr Kabir Ahmed Sidhu said a deeper corporate debt market would help diversify long-term financing, mobilise institutional investment and support infrastructure and industrial growth.
He said strengthening the corporate debt market would provide businesses with alternatives to traditional bank financing while creating additional investment opportunities for institutional investors.
The establishment of the desk forms part of the SECP’s broader corporate debt market reforms aimed at simplifying issuance procedures, reducing costs and standardising documentation.
The regulator said the measures are intended to encourage greater participation from both issuers and investors and strengthen the role of the corporate debt market as an alternative source of long-term financing for Pakistani businesses.
The initiative is also expected to contribute to the development of a more diversified capital market and support businesses seeking funding for expansion, investment and long-term projects.