Region to launch fund

Region to launch fund

MANILA (AFP): The Philippines and southeast Asian neighbors Brunei, Indonesia and Malaysia are to launch in July a US$500 million growth fund aimed at spurring economic activity in their contiguous areas, Filipino officials said.

The East Asian Growth Area direct investment fund's core investors would be government financial institutions of the four countries which will account for $300 million.

About $200 million will be raised by private placements through private placement or equity participation involving private or multilateral institutions, Central Bank officials who asked not to be named said.

The fund will serve as an "economic catalyst" by taking part as an equity investor in infrastructure and other projects within the sub-region, the officials said.

The growth area involves Borneo, the Philippine island of Mindanao and nearby areas of Indonesia.