Maharlika eyeing to raise P56B to back energy projects

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Government-operated Maharlika Investment Corporation (MIC) is aiming to secure Php 56 billion in its initial fundraising activity to back energy projects through partnerships with other sovereign wealth funds (SWF) and venture capitals. 

MIC President and CEO Rafael Consing Jr. said he is appealing for approval from the MIC board to garner the Php 56 billion exclusively for the energy sector, according to Philippine Star in its report.

This appeal was because the corporation placed risk limits, meaning only 15% could be invested in every sector of the Php 125 billion seed capital; with 15% equating to Php 18.75 billion.

Consing questioned the 15% as the requirements for the energy sector would require more than Php 18.75 billion. With the inclusion of the Php 18.75 billion sectoral limit, the target now of the MIC was to raise at least Php 37.25 billion. 

To achieve this, the corporation aimed to establish a limited partnership (LP) with a few SWFs. 

For the LP to work, it would need a general partner. In this situation,  MIC would have full control over management and oversee the entire business. The limited partners would have responsibility only to the extent of their investment.

Aside from SWFs, the MIC chief said that it also considered private equity to develop the funding; however, he had not specified a timeframe for the fundraising activity. 

Earlier, MIC planned to develop its first investment in the fourth quarter of this year.