Nelson Morales

Maharlika Investment Corp open to investing in State Grid Corporation of China

Article (news)

Pia Gutierrez

ABS-CBN News

MANILA (2nd UPDATE) — The Maharlika Investment Corporation says it is open to acquiring shares in the State Grid Corporation of China, which owns a 40 percent stake in the National Grid Corporation of the Philippines.“If it becomes available, I think so yes,” MIC President and CEO Rafael Consing said when asked whether the country’s sovereign state fund is interested in getting shares of the SGCC to increase its stake in the NGCP.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2025/1/28/-may-nagbabantay-why-the-maharlika-fund-is-investing-in-ngcp-0857">&#x27;May nagbabantay&#x27;: Why the Maharlika Fund is investing in NGCP</a></div>Consing’s remark comes shortly after the MIC announced that it will acquire 20 percent of the Synergy Grid and Development Philippines Inc. (SGP) to get a stake in the NGCP. The SGP currently SGP holds a 40.2 percent effective ownership interest in the country’s power grid operator.The MIC official however clarified that there had been no prior talks with the Chinese firm on the matter.“So, we have not spoken basically to the Chinese, we only saw this opportunity sa SGP level – we’re not having any discussions with stake grid of China at this point in time. So, not conversations are occurring with them,” he said.<div>Not eyeing return of Land Bank, DBP contribution</div>Meanwhile, the MIC is not eyeing the return of the contributions made by the Land Bank of the Philippines and the Development Bank of the Philippines to the seed capital of the country’s sovereign wealth fund even when it starts making money.The International Monetary Fund earlier urged the government to swiftly restore the capital of the two state-owned banks following their P75 Billion contribution to the MIC’s start-up capital.“While the establishment of the MIC can help address the country&#x27;s investment needs; it should not come at the cost of a resilient financial system, sound regulatory framework, and level-playing field,&quot; the IMF report read.Consing however pointed out that under its current structure, dividends earned by the MIC are paid directly to the Bureau of Treasury.   “So, hence, I don’t see any relief coming from us,” Consing said.The official also pointed out that the Land Bank and DBP are currently under regulatory relief from the Bangko Sentral ng Pilipinas after infusing capital to the MIC. “So, therefore, their Tier 1 capital has not in fact suffered because of the fact that they have got their three year regulatory reprieve,” he said. “And even if you do, the likes of Landbank for example, still in fact has got a significantly higher Tier 1 capital compared to global standards so that should not be a problem.”   Consing meanwhile said that one way to increase the capital of the state-owned banks is by reducing the dividends that they pay to the government in order to build up their capital base.  “And the rest, I think they can take that from our third party capital,” he said. “And that basically, is what the new laws currently are being amended or pardon me the laws rather than establishing Landbank and DBP being amended in order for them  to raise capital more efficiently that they could today.”<div>Escudero expresses doubts</div>Meanwhile, Senator Francis &quot;Chiz&quot; Escudero has questions regarding the MIC&#x27;s ability to secure the country&#x27;s transmission, even after it acquired a 20 percent stake in the National Grid Corporation of the Philippines (NGCP). &quot;Ang layunin daw, para magkaroon ng mas malaking kontrol sa transmission system natin. Hindi ko yata naalalang nakita yun sa MIC,&quot; said Escudero. &quot;Pangalawa, ito daw ay para tiyakin na secure yung ating transmission system. Hindi ko rin yata nakita yun dun sa MIC law. At panghuli, sang-ayon sa MIC law din, hindi pwedeng mag-govern, magpatakbo ng negosyo ang MIC,&quot; he added.&quot;So paano nila matitiyak yung mga bagay na yan kung hindi sila pwedeng magpatakbo ng negosyo? Bagaman minorya sila, hindi sila pwedeng maging opisyal ng korporasyon.&quot;Escudero voted against the creation of MIC.

The Maharlika Investment Corporation says it is open to acquiring shares in the State Grid Corporation of China, which has a 40 percent stake in the National Grid Corporation of the Philippines.

The Maharlika Investment Corporation says it is open to acquiring shares in the State Grid Corporation of China, which has a 40 percent stake in the National Grid Corporation of the Philippines.