Macquarie to manage $600m Philippines infra fund

Macquarie Infrastructure and Real Assets will also invest $50m in the fund alongside Manila’s largest state-backed pension fund, which is providing a cornerstone investment of $300m. Two other undisclosed foreign investors are also anchoring the fund.

Macquarie Infrastructure and Real Assets (MIRA) has won a mandate to manage a PHP25 billion (€460 million; $577 million) state-backed infrastructure fund in the Philippines known as the Philippine Investment Alliance for Infrastructure.

According to a statement from the Government Service Insurance System (GSIS), the country’s biggest pension fund, MIRA was chosen to manage the fund “after a rigorous selection process of nearly nine months”. Robert Vergara, the head of the pension, said that “along with GSIS and MIRA, two other foreign institutions will participate as anchor investors in the fund,” without disclosing their identities.

“We are pleased to partner with GSIS, the largest pension fund in the Philippines, particularly at a time of strong economic growth in the country,” stated Frank Kwok, senior managing director of MIRA.

In addition to managing the fund, MIRA is said to be committing $50 million for the platform alongside GSIS, the fund’s cornerstone investor with $300 million, Reuters reported. The news agency also quoted Vergara saying the fund could raise as much as $600 million to $625 million from foreign institutional investors.

The Philippine Investment Alliance for Infrastructure will target public-private partnerships (PPP) in the transport, energy, water and communications sectors, among others, GSIS said in a statement.

The Philippine government is planning to launch at least eight PPPs this year, including new airports, an expressway and a water project. The deals are said to be worth a total of PHP130 billion.