Long-term capital from overseas rose sharply in May as foreign investors brought in more equity into their local operations and acquired long-dated debt instruments issued by Philippine entities, according to Bangko Sentral ng Pilipinas (BSP).
In a statement, BSP said foreign direct investments (FDI) net inflows grew by 42.4 per cent to US$399 million in May 2020 from the $280 million net inflows posted in the same period in 2019.
Equity capital placements, likewise, increased by 8.1 per cent to $80 million from $74 million, while withdrawals decreased by 96 per cent to $3 million from US$73 million. Equity capital infusions during the month came largely from Japan, Singapore and the United States.
“The positive growth represents a reversal from the last three consecutive months of decline attributed largely to the weak global outlook and investors’ confidence following the pandemic, ” BSP said.