(CNN Philippines) — Foreign direct investments (FDI) posted a gain of 17.9% to $359 million in February 2015 from $305 million in February 2014, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP attributes February’s year-on-year double-digit FDI growth to a 184.7% spike in net equity capital to $179 million. Gross equity capital placements alone more than doubled at 103.6%, while withdrawals declined by 59.4%.
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However, nonresidents’ investments in debt instruments contracted 29.5% to $122 million from February the previous year. The BSP defines such investments as the lending by parent companies abroad to their local affiliates to fund existing operations and business expansion. Reinvestment of earning also dropped by 15.9% to $58 million.
FDI net inflows amounting to $622 million for the first two months of the year are significantly lower (-48%) than the $1.2 billion registered in the same period last year. All FDI components posted lower net inflows on a year-to-date basis compared to 2014.
In a statement, the BSP said that a 61.8% contraction in nonresidents’ investments in debt instruments during the first two months of 2015 — compared to the same period last year — was the cause of the decline. Likewise, net equity capital registered a 22.4% decline to $205 million from $264 million. “Meanwhile, reinvestment of earnings for the first two months of 2015 reached $128 million, lower by 32.1%,” the BSP said.
BSP said that February 2015’s equity capital investment primarily came from the U.S., the U.K., Japan, and Singapore.
Related: Financial system grew in 2014, says Bangko Sentral
