Australia’s Macquarie placing $600M in Philippines’s PPP projects

 

One of the world's largest financial services companies is investing up to $600 million to finance infrastructure projects under the Aquino administration's public-private partnership program.

 

Sydney, Australia-based Macquarie Group said the fund allotted to the Philippines is more or less on a par with the $1.2 billion the group placed in India and the $1 billion in China.

 

"The Philippines is very important to the Macquarie Group. There is a good combination of strong economic growth and sound prospects for the economy," said Michael de Guzman, managing director of the group's Manila office.

 

In fact, the Philippines is the first country in Southeast Asia where Macquarie invested some of its funds, because of  sound macroeconomic fundamentals and growth potential, De Guzman told reporters on the sidelines of the "2012 Philippine Energy & Infrastructure Business Meeting."

 

According to its website, Macquarie has $339 billion worth of funds under its management.

 

Under the PPP initiative, Macquarie is eyeing to finance the Light Rail Transit (LRT) 1 extension to Cavite from Baclaran, the proposed P10.2 billion Mactan-Cebu International Airport, and the Ninoy Aquino International Airport Expressway project.

 

While foreign investors are interested in placing their money in Philippine projects, BDO Unibank chairperson Teresita Sy-Coson said local banks have more than enough liquidity to raise at least $1 billion for infrastructure projects under the government's PPP initiative.

 

Banks are – in fact – excited for the PPP program to go full swing to benefit from the highly liquid financial market.

 

"The delay means delayed business. We are hoping that these projects would be bidded out soon," Sy-Coson added.

 

De Guzman, however, said Macquarie is also eyeing to fund power projects including power plants that run on coal, gas, and renewable energy.

 

The group earlier partnered with the state-run Government Service Insurance System and Asian Development Bank, pooling their funds under the Philippine Investment Alliance for Infrastructure, especially to finance infrastructure projects.

 

GMA News

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Investment rating for the Philippines in Q1 2013, Strong Economy, HK tourist Influx up inspite of ban

 

There are two good reasons why the Philippines will likely get an investment grade credit rating in early 2013, a monetary official said

 

The Philippines may get an investment grade by early 2013, according to projection by.

 

One is the country's sound macroeconomic fundamentals and positive perception by the international capital market, economist and Monetary Board member Felipe Medalla told a convention of Thrift banks, where he was the keynote speaker.

 

"We should be getting an investment grade, hopefully early next year," Medalla said.

 

The other reason is interest rates.

 

Philippine bonds carry lower yields than bonds of peers with similar credit ratings, an indication that credit rating agencies are behind the international capital markets in assessing the country's creditworthiness, Medalla said.

 

Philippine foreign exchange reserves reached a record of over $80 million as of end-August, the economist noted, saying that level of reserves gives Bangko Sentral the flexibility to cushion the impact of capital flight by foreign investors fleeing from emerging markets.

 

Bangko Sentral could also used its reserves to shield the peso from sharp declines, thus keeping the foreign exchange stable if need be. "The Philippines is practically invulnerable to capital flow reversals," Medalla said.

 

Moody's Investor Service has given the Philippines a credit rating of two notches below investment grade, while Fitch Ratings and Standard & Poor's assessed the country's creditworthiness just a notch under investment grade

 

Philippines Economy 2012 Remains Strong

 

International credit watcher Standard & Poor's raised its growth forecast for the Philippines for 2012, even as it downgraded its outlook for other economies in Asia and the Pacific, saying the country has the capability to withstand unfavorable developments in the global economy.

 

In its latest report titled "Asia Pacific Feels the Pressure of Ongoing Global Economic Uncertainty," S&P said it now expected the Philippine economy to expand by 4.9 percent, instead of the earlier projection of 4.3 percent, this year.

 

On the contrary, the credit-rating firm lowered its growth projections for several economies and kept its previous forecasts for a few others in the region to take into account the impact of the prolonged debt crisis in the eurozone, the still lackluster growth of the United States and the slowdown of China and India.

 

S&P said the unfavorable developments in the world's biggest economies were expected to dampen growth of many Asia-Pacific countries, except for the Philippines.

  

More HongKongers Tourists Arrive Visayas  for Travel Restriction in Manila

 

In spite of the updated black travel advisory of the Hong Kong Security Bureau on the Philippines, an official from the Department of Tourism (DoT) yesterday said that the tourism industry has already bounced back from the restriction and expects an even bigger growth rate from the Hong Kong market by the end of the year.

 

"We are happy to report that visitor arrivals from Hong Kong from January to July, 2012, reached 67,844 representing a growth rate of 1.71 percent," said Assistant Secretary for International Promotions Benito Bengzon Jr.

 

According to Bengzon, the alert issued two years ago is still in place but the DoT continues with its marketing and promotions program for the Hong Kong outbound travel market.

 

The Hong Kong Special Administration Region's black travel advisory is a warning to its citizens to avoid all travel to a country placed under the category.

 

The Hong Kong Security Bureau updated its black travel advisory to the Philippines underlining the risk of possible terrorist attacks.

 

"Serious hostage-taking incident happened in Manila on August 23, 2010. Residents should avoid all travel to the country; those who are already there should attend to personal safety and exercise caution," the advisory said.

 

The black travel advisory was issued after the August 23 hostage-taking incident in front of the Quirino Grandstand where a dismissed police officer hijacked a bus full of Hong Kong tourists.

 

Live Trading News, GMA News, Manila Bulletin 

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