The Department of Finance (DoF) is set to discuss with the two state pension funds the government’s shares in the North Luzon Expressway Corp. (NLEX).

“I think it’s better that we sell those shares to raise non-tax revenues, and better if the pension funds buy from us,” Finance Secretary Ralph Recto said, referring to the Social Security System (SSS) and the Government Service Insurance System (GSIS).

“We’ll be meeting with them soon,” Recto, who is also the SSS and Maharlika Investment Corp. (MIC) chairperson, said.

The DoF last year floated the idea of unloading its 3.5-percent stake in NLEX.

SSS president and CEO Rolando Macasaet said he is open to investing in infrastructure projects as the MIC also intends. However, he said the SSS funds will be limited to “brownfield” investments.

“I will never put SSS funds in high-risk investments because we are a pension fund, not a development fund,” Macasaet said.

Brownfield investments consist of existing facilities with a record of profits, which are unlike greenfield investments that deal in facilities yet to be constructed.

Backed by state

“I like NLEX because it has no construction risk. If Maharlika invests there, I will also invest there. But I will not invest in a new toll road,” Macasaet said.

The MIC manages the Maharlika Investment Fund, a state development fund aimed at infusing capital in the government’s infrastructure plan for the country’s long-term economic growth.

The fund is backed by capital from state financial institutions, namely, the Bangko Sentral ng Pilipinas, Land Bank of the Philippines and Development Bank of the Philippines.

Meanwhile, SSS senior vice president for fund management group Ernesto Francisco Jr. said the pension agency achieved more than a 6-percent growth in investment earnings through its various investment channels.

He said the SSS has over P750 billion in investible funds.