Philippine Listing Provides Infrastructure Investment Portal

On September 22, Metro Pacific Investments (MPI), the local holding firm of Hong Kong-based First Pacific, raised PHP14.31bn (US$301mn) after completing a secondary listing of 4.77bn shares, providing a rare portal for foreign investment in the country's ailing infrastructure industry. The share sale attracted a wave of investors - who alike MPI - are looking to tap into the national government's fiscal spending in the sector. The Philippine investment company, which focuses on infrastructure assets, said it intends to use the net proceeds to pay down debt and fund the further diversification of its portfolio, in part through the acquisition of a stake in Manila Electric Company (Meralco). The move will complement MPI's existing investment in the road, water and hospital sectors. This dilutive offering underlines CFW's key market view that EM infrastructure remains buoyant and a key area for FDI.

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