PRA taps PhilExim to guarantee retirement villages, other projects for retirees

The Philippine Export-Import Credit Agency (PhilExim) has been tapped by the Philippine Retirement Authority (PRA) to guarantee retirement villages and other projects covered by the retirement industry.

Philexim president and chief executive officer Virgilio R. Angelo said that along with the mining sector, the retirement industry are the new priority sectors that the Arroyo Government is trying to promote and encourage.

The retirement industry, Angelo pointed, has a high multiplier effect and will provide plenty of jobs in the services sector.

The PhilExim, Angelo said, currently has a capital of P10 billion but it can leverage its capital up to P150 billion to be able to provide a lot of growth for its target sectors.

Normally, Angelo said, the PhilExim would prefer project proponents with a 70-30 debt to equity ratio.

Angelo noted that the Philippine retirement industry is "a potential $1.5 bilion a year industry within the next five years."

PhilExim, thus, Angelo said,"will support the endeavor of the Philippine Retirement Authority (PRA) and the Philippine Retirement Industry (PRI) as sovereign guarantor, either through project financing or through infrastructure lending."

So far, the PhilExim has not yet received any request for a guarantee.

According to PRA chairman Edgardo B. Aglipay, two retirement village investors have not requested any guarantee and are proceeding with their projects.

The two projects are the Sehyun Development condotel project in Nasugbu, Batangas and the $50-million Ubec retirement village in Bohol.

Sehyun is a Korean firm that is putting up a 750-room condotel in Nasugbu, Batangas.

Ubec is an American firm putting up several retirement villas.

Two other investors – Asiana, an affiliate of the Japanese Marubeni Group and EDAW Ltd. of Hong Kong are still in the planning stage for their various projects.

Asiana is reportedly eyeing a $700 million, 20 hectares retirement facility at the reclaimed area near the Mall of Asia.

EDAW, on the other hand, is eyeing a retirement village along the North Luzon Expressway between the San Simon and San Fernando exits.

Aside from its tie-up with the PhilExim, the PRA has also signed separate memorandum of agreements (MOAs) with the Philippine National Police (PNP) and the Manila International Airport Authority (MIAA) to ensure a pleasant and safe welcome for incoming and departing retirees.

The MOA with MIAA will allow a pleasant arrival and departure reception for foreign retirees with a help and info desk as well as courtesy use of the VIP lounge.

To ensure the security of the retirees, the PRA has sought the cooperation of the PNP.

Aglipay is set to leave on Sept. 29 up to Oct. 17 for a series of speaking engagements as well as participate in a trade mission organized by the Department of Foreign Affairs (DFA) and the Department of Trade and Industry (DTI) to promote the Philippines as a retirement haven to Filipino-Americans and Americans in Los Angeles, San Diego, Miami, Chicago and Washington.

Aglipay hopes to attract more investors as well as invite retirees to the Philippines.