Maharlika Investment Fund has already been given a P25 billion contribution by the Development Bank of the Philippines, even though the corporation that will manage the country’s first sovereign wealth fund has not yet been officially established.
The DBP said in a statement over the weekend that it has already formally turned over the amount to the Bureau of the Treasury. This is nearly three weeks after the law’s implementing rules and regulations (IRR) were issued. The P25 billion is DBP’s share of the initial seed capital for the MIF.
The Development Bank of the Philippines (DBP) supports the government’s efforts to quickly establish the Maharlika Investment Fund (MIF) to transform the country’s economy.
The DBP expects the MIF to be well-managed through strong leadership and corporate governance.
DBP President and CEO Michael de Jesus said the MIF should be able to use the government’s financial assets effectively to generate significant returns and support infrastructure projects, which would lead to efficient wealth and asset management.
DBP President and CEO Michael de Jesus said that he expects the Philippines to start seeing the benefits of the Maharlika Investment Fund (MIF) in both financial and developmental terms within the next four to five years, as a result of the MIF’s pioneering activities.
Finance Secretary Benjamin Diokno also expressed confidence that the MIF will be up and running by yearend, as scheduled. He said that there is growing interest from multilateral financial institutions and foreign investors to invest in the MIF.
With the regulatory requirements in place and the seed capital from state-run institutions secured, Diokno is confident that the fund will be operational by yearend.
The MIF has an authorized capital stock of P500 billion. The LandBank and the national government are mandated to initially contribute P50 billion each, and DBP will contribute P25 billion.
The P50-billion government share will come from central bank dividends, the Philippine Amusement and Gaming Corp.’s income share, proceeds from the privatization of government assets, and other sources such as royalties and special assessments for a period of five years.
Nominations to and applications for posts in the MIC are open until September 27.
The MIC will be the investment body responsible for the overall governance and management of the MIF. A board of directors with nine members will govern the MIC.
As finance chief, Diokno will automatically be designated as MIC chair. DBP’s De Jesus and Landbank president and CEO Lynette Ortiz will each get a seat on the board.
The six remaining posts are for the CEO, as well as for two regular and three independent directors from the private sector.
The MIC is tasked with identifying financially and commercially viable infrastructure projects to invest in and formulating investment strategies covering emerging megatrends such as environment, social and governance, digitalization, and healthcare.
The Development Bank of the Philippines (DBP) is a state-owned development bank headquartered in Makati, Philippines. It was established in 1947 to help rebuild the country’s war-torn economy.
The DBP provides a wide range of banking and financial services to various sectors of the economy, including agriculture, industry, infrastructure, and social services. It also plays a key role in supporting the government’s development programs and initiatives.
Some of the DBP’s key products and services include:
- Loans for businesses, infrastructure projects, and social services
- Deposit accounts and investment products
- Trade finance and remittance services
- Treasury products and services
The DBP is one of the largest banks in the Philippines, with over 100 branches nationwide. It is also a member of the BancNet ATM network.
Here are some examples of how the DBP supports the Philippine economy:
- The DBP provides loans to farmers and agricultural businesses to help them increase their productivity and income.
- The DBP finances infrastructure projects, such as roads, bridges, and power plants, which help to improve the country’s transportation and energy infrastructure.
- The DBP provides loans to small and medium-sized enterprises (SMEs) to help them grow and create jobs.
- The DBP supports the government’s social development programs, such as housing and education programs.
The DBP is an important part of the Philippine financial system and plays a vital role in supporting the country’s economic development.