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.