Landbank remits ₱50-B for Maharlika fund

Metro Manila (CNN Philippines, September 15) — The Land Bank of the Philippines (Landbank) on Friday said it has already sent to the Bureau of the Treasury its ₱50-billion contribution for the Maharlika Investment Fund (MIF).

The government-owned bank is mandated by Republic Act (RA) No. 11954 to remit the amount to the Maharlika Investment Corporation for the sovereign wealth fund, which President Ferdinand Marcos Jr. earlier said was designed to drive economic development in the country.

According to Finance Secretary and Landbank chairman Benjamin Diokno, the bank’s investment was already settled on Thursday, around two months since Marcos signed the law creating the fund and over two weeks since the state treasury issued the law’s implementing rules and regulations.

"We’re witnessing a growing interest for investments in the MIF from multilateral financial institutions and foreign investors. With the regulatory requirements in place, and after securing the seed capital from state-run institutions, we are confident that the Fund will be operational by yearend," Diokno said in a statement.

READ: Diokno: Maharlika fund draws 'a lot of interest' from multilateral institutions

Under RA 11954, the initial capital for the MIF will come from the national government (₱50 billion), the Landbank (₱50 billion), and the Development Bank of the Philippines (₱25 billion).

The seed capital contributed by these so-called founding government financial institutions allows them to subscribe to shares in the MIC, which has an authorized capital stock of ₱500 billion.

Up to 75% of that capital stock, or ₱375 billion, are common or voting shares that can be sold only to the national government, and government-run corporations or financial institutions that already counted the two state-owned banks.

The remaining 25%, valued at ₱125 billion, are preferred or non-voting shares available for subscription of the private corporations and financial institutions.

Landbank President and CEO Lynette Ortiz said the law has enough safeguards “to ensure full disclosure and transparency in the management of the Fund, as well as the integrity and professionalism of the management team that will be entrusted to lead the Maharlika Investment Corporation.”