Global fund manager Aureos Capital Ltd. and Planters Development Bank are pooling a US$20-million private equity fund for small and medium-sized enterprises in the Philippines as part of a US$70-million regional fund for Southeast Asia.
Bangko Sentral ng Pilipinas officer-in-charge Alberto Reyes said local lender Planters Bank would contribute US$5 million or about 25 per cent of the Philippine allocation.
"As presented by Planters Bank, this shall be the first private equity fund of its kind in the Philippines, which can be a source of long-term risk capital that will benefit many promising SMEs," Reyes said.
SMEs are generally considered the backbone of the economy, contributing about 32 per cent of domestic productivity.
Reyes said the BSP's policy-making Monetary Board approved Planters Bank's proposed investment in the local fund--to be called Planters Bank Aureos Fund--in its meeting last Thursday.
