Maharlika to start investing in 60-90 days, Consing says

THE Maharlika Investment Corp. (MIC) said it is poised to make its initial investments, both energy-related, within 60-90 days.

“We have about eight memoranda of agreement. Currently undertaking due diligence on two very important investments,” MIC President and Chief Executive Officer Rafael D. Consing, Jr. told a Senate hearing on Tuesday.

“Both (are) in the energy sector, and… we expect perhaps that in the next 60 to 90 days, we should be able to deploy (Maharlika funds).”

Energy is one of the priority investment areas of the sovereign wealth fund, and is expected to take up the bulk of the initial investments, Mr. Consing has said.

He said Maharlika is looking to raise $1 billion for renewable energy and sources of alternative energy to diversify the power mix and stabilize prices.

Finance Secretary Ralph G. Recto, who chairs the MIC board, has said that the first Maharlika investments will be finalized by year’s end.

Mr. Consing said that the fund has thus far earned about P1.5 billion in interest income.

“We (had) about P144 million in retained earnings last year, when we started placing the money in November… and another about P1.4 billion this year, so that’s a total of about P1.5 billion in interest income,” he said.

Mr. Consing said Maharlika’s proposed budget is about P336 million, which will primarily go to capital expenditures. It has established its headquarters in Bonifacio Global City, he added.

The fund has an authorized capital stock of P500 billion. Its initial capital of P125 billion comes from contributions from the Land Bank of the Philippines (P50 billion), Development Bank of the Philippines (P25 billion) and the National Government (P50 billion).

The Maharlika board has yet to fill one seat, Mr. Consing said.

“The board is also composed of about five individuals from the private sector out of nine. However, one seat has yet to be filled,” he added.

Apart from Mr. Recto and Mr. Consing, the board is composed of the presidents of LANDBANK and the DBP, independent directors, and regular directors.

In July, the sovereign wealth fund completed its investment and risk management framework and secured membership in the International Forum of Sovereign Wealth Funds. — Beatriz Marie D. Cruz