Life insurers eyeing fixed-income market for infrastructure financing

MEMBERS of the Philippine Life Insurance Association, Inc. (PLIA) are looking to tap the fixed-income securities market to participate in infrastructure financing, the group’s president said.

PLIA President Rico T. Bautista, who is the president and chief executive officer of Etiqa Life and General Assurance Philippines, Inc., said in a speech on Tuesday that the group plans to “explore securitization as a pathway to industry participation in infrastructure financing and creating diversity in the fixed-income securities market.”

“Securitization is seen to provide a new source of financing for the significant and growing demand of the infrastructure marketplace,” he added.

He said the PLIA hopes to provide high-quality fixed-income securities that can support the long-term investment objectives of insurance fund managers.

“It is a positive development that securitization has recently been recommended to be part of the blueprint of the Capital Market Development Council, of which PLIA is a member,” Mr. Bautista added.

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