THE Philippine unit of global insurance firm Sun Life of Canada is making its first infrastructure investment in the country, by venturing into power generation in Mindanao.
Sun Life Philippines got a go signal from its parent company three weeks ago for the venture, disclosed Rizalina Mantaring, president and chief executive officer of Sun Life Financial Group of Companies in the Philippines.
Mantaring said Sun Life Philippines would invest in a power plant to be located in Mindanao, through a 12-year loan agreement.
The Sun Life executive, however, stressed that she cannot comment further on the matter as the insurance firm is still securing approvals from its regulator, the Insurance Commission (IC).
“We still need to get regulatory approvals from IC,” Mantaring said. “Until it is fully approved, we cannot disclose the terms yet. But it’s an investment in power. Hopefully, we can announce further details as soon as we can get the approval.”
Mantaring said Sun Life’s move is in line with the government’s aim to increase private sectors’ participation in infrastructure development.
“We really want to invest in infrastructure because it is one of the things that Finance Secretary Cesar Purisima has been challenging insurance companies,” she said. “On our side, we have been telling the government we want to invest in infrastructure because it is a great match—long-term assets, long-term liabilities.”
Mantaring made the announcement on the sidelines of the 27th Pacific Insurance Conference (PIC) in Manila.
PIC is a non-profit organization registered in Hong Kong. It is a biennial platform for global insurance and financial industry stakeholders, concerned with life, health, retirement savings, and wealth management.