Maharlika gets P75-B seed fund
We are witnessing a growing interest in investing in the MIF from multilateral financial institutions and foreign investors.
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We are witnessing a growing interest in investing in the MIF from multilateral financial institutions and foreign investors.
Two state financial institutions have plunked down their contributions to get the ball rolling for the Maharlika Investment Fund, or MIF, the country's first sovereign wealth fund.
The Development Bank of the Philippines turned over its P25-billion contribution on 15 September, the day after the Land Bank of the Philippines pumped in its P50 billion to the Maharlika Investment Corp., the corporate vehicle for the MIF, for a total of P75 billion in seed fund for the MIC.
The Bureau of the Treasury, or BTr, on 28 August issued the implementing rules and regulations of the MIF Act of 2023, which took effect on 12 September.
President Ferdinand "Bongbong" Marcos Jr., in a forum last Wednesday in Singapore organized by the US think tank Milken Institute, said the government will be tapping mainly its unutilized reserves to find investment opportunities. He assured that professionals will run the fund without intervention from politicians.
Marcos said the MIF will allow the government to tap the country's reserves for investment without borrowing.
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The government seeks to utilize the MIF to bankroll infrastructure, energy development, and agriculture projects.
DBP president and chief executive officer Michael de Jesus said DBP deposited its share of the seed fund to the BTr's account on 15 September, ahead of the 17 September deadline.
Under the law, the national government, DBP and LandBank are mandated to put up the initial capital of the MIC, contributing P50 billion, P25 billion, and P50 billion, respectively.
Finance Secretary Benjamin Diokno said the remittances from the two largest state institutions will pave the way for the full operation of the MIC.
Hunt for execs starts
Foreign and domestic investors are eagerly awaiting the full establishment of the MIC, as the national government is expected to complete the appointment of highly qualified and capable individuals who will comprise the MIC governing board.
"We are witnessing a growing interest in investments in the MIF from multilateral financial institutions and foreign investors. With the regulatory requirements in place, and after securing the seed capital from the state-run institutions, we are confident the fund will be operational by yearend," Diokno said.
De Jesus said the MIC should optimize the use of the government's financial assets to generate substantial returns and support infrastructure to promote the efficient management of wealth and assets.
He added that "gains from both the financial and developmental fronts as a result of the trailblazing activities of the MIC" will be realized in the next four to five years.
