Foreign direct investments trebled in October | Inquirer Business

Foreign direct investments trebled in October

By: - Business News Editor / @daxinq
/ 05:50 AM January 11, 2018

A surge of equity capital inflows into the power sector trebled the level of foreign direct investments in the Philippines in October of last year, according to the latest data from the Bangko Sentral ng Pilipinas.

The net inflows of foreign direct investments (FDIs) — inflows in the form of equity capital, reinvestment of earnings and borrowings between affiliates — rose threefold in October 2017 to $2 billion from $670 million registered in the comparable period in 2016.

The BSP said the surge of capital was a reflection of “continued investor confidence in the country’s strong macroeconomic fundamentals and growth prospects.”

Article continues after this advertisement

On a cumulative basis, FDI net inflows for the first 10 months of 2017 grew year-on-year by 20.5 percent to $7.9 billion. In particular, net equity capital investments increased by 54.7 percent to $2.6 billion as gross equity capital placements of $3.1 billion more than offset withdrawals of $465 million.

FEATURED STORIES

In October 2017, more than three-fourths of FDI net inflows were in the form of equity capital, with gross placements rising markedly to $1.6 billion from $84 million a year ago. A significant portion of the equity capital placements was channeled to electricity, gas, steam and airconditioning supply activities.

The other sectors that received investment inflows were manufacturing; construction; real estate; and wholesale and retail trade. The top country sources were the Netherlands, Singapore, Kuwait, the United States and Germany, BSP said.

Article continues after this advertisement

Investments in debt instruments, or intercompany borrowings between foreign direct investors and their subsidiaries or affiliates in the Philippines, amounted to $431 million, lower by 22 percent than the previous year’s level. Meanwhile, reinvestment of earnings reached $57 million during the month.

Article continues after this advertisement

Gross equity capital placements for the first 10 months of 2017 came mostly from the Netherlands, the United States, Singapore, Japan and Hong Kong.

Article continues after this advertisement

By economic activity, equity capital investments were channeled mainly to electricity, gas, steam and airconditioning supply; manufacturing; real estate; construction, and wholesale and retail trade activities.

Nonresidents’ net investments in debt instruments totaled $4.6 billion during the period, 8.5-percent higher than the level recorded during the comparable period in 2016. Reinvestment of earnings amounted to $662 million.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: Bangko Sentral ng Pilipinas, Business, Direct Investments, equity capital, Investor Confidence, News

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.