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The Philippines' legal market boasts several well-rounded heavyweights that regularly handle work in all sectors. Though many of them have focuses in areas such as litigation, intellectual property and energy and natural resources, they also receive mandates in highlight transactions in the transactional practices, such as banking and capital markets....

The Philippines' legal market boasts several well-rounded heavyweights that regularly handle work in all sectors. Though many of them have focuses in areas such as litigation, intellectual property and energy and natural resources, they also receive mandates in highlight transactions in the transactional practices, such as banking and capital markets.

However, good legal counsel is essential in the Philippines, especially for corporates who must comply with the US's Foreign Corrupt Practices Act (FCPA) and the UK's Bribery Act. Though President Aquino has promised to improve the situation, even promising the Asian Development Bank (ADB) that "the days of corruption are over," local practitioners are far more cynical of the government in its current form. However, they are optimistic that as the Philippines develops, it will improve. Given the country's growth rates this year - among the highest in the Asia-Pacific - counsel are looking at an increasingly positive situation.

CONTEXT AND TRENDS This year the Philippines saw a pick up in growth, with its economy growing 5.2% in the second quarter of 2012, outperforming neighbours and surprising industry experts....

This year the Philippines saw a pick up in growth, with its economy growing 5.2% in the second quarter of 2012, outperforming neighbours and surprising industry experts. However, many sources warn that continued growth requires better infrastructure, and it seems that the country is ready to invest.

The Aquino government has heavily supported the public-private partnership (PPP) programme, with the PPP Center increasingly active in promoting projects. Proposals include projects for sanitation, water services and tourism projects, as well as highways and power. It has been reported in the Philippine media that 14 projects are set to be rolled out this year, while another 43 projects are in the pipeline. If these actually come to fruition, as practitioners have concerns about whether these projects will ever be seen, then counsel will be busy with PPP projects for years to come.

Given the popularity of project finance in the Philippines, it is obvious that lenders are doing well. Practitioners note that local banks have been liquid and willing to lend to both local and foreign borrowers. The capital markets remain mostly equity-focused, with companies looking to IPOs and secondary offerings to raise funds.

Mergers and acquisitions were also popular this year, with a highlight being Philippine Long Distance Telephone's landmark acquisition of Digitel. Counsel say that they have seen more deals related to Philippine companies buying out foreign investors this year and of course the traditional conglomerates have remained active. Business-process outsourcing (BPOs) have remained important clients for firms.

Because the country has experienced buoyant growth, restructuring and insolvency has been quite quiet. However, practitioners have been buoyed by the massive insolvency cases connected to shipping-related operations as that sector continues to be troubled by the global economic crisis.