Despite the credit crunch resulting from the global economic crisis, there are still a lot of fund-raising options for mining companies with operations in the Philippines.

Speakers during the Mining Philippines 2009 Conference point to loans form export credit agencies and a host of financial instruments from investment banks as well as improving conditions in the equities market.

Japan Bank for International Cooperation executive officer Naito Takaya said continues to be interested in providing financial support for mining firms that are already in the development and production phases.

Loans are available as long as there is strong involvement of Japanese companies in the project as sponsors, contractors, operators or off-takers or if the minerals extracted are to be imported by Japan.

MacQuarie Corporate Finance Philippines managing director Michael de Guzman said the equities market are about to become another rich source of fresh capital for mining companies.

He noted that there is growing belief that the markets may have already bottomed out and a rebound may be coming up as investment banks have been recovering since the start of the year.

De Guzman said some investment banks have reported to have recovered half the value of their investments, some continue to see improvement while there are those that are already back to where they were in 2007.

He said stock markets in the United States, United Kingdom and Canada are already up 20 percent since January; while Asian markets such as Japan, Hong Kong and Australia are already up 30 percent since the start of the year.

However, De Guzman said all these pale in comparison to the Philippine Stock Exchange’s mining index which has surged over 150 percent since January and is already near its peak level which was hit in 2007.

He said the difference now, after the crisis, is that investors have become more discerning and are focusing on strong growth stories and liquidity. There are also early indicators of demand recovery driven largely by renewed Chinese appetite for commodities.

De Guzman said all these positive factors have been recognized overseas and initial public offerings are expected to gain momentum as $120 billion in IPO issuances are already in the pipeline.

Deloitte & Touche Corporate Finance Pte. Ltd. director for corporate finance pointed out that, in order to attract investments, local mining companies should package their deals properly and learn how to reach out to investors outside of the region.