The central bank has approved Banco de Oro Unibank’s proposal to purchase P1.39 billion-worth ($30 million) of equity in an investor in Manila North Tollways Corp. (MNTC).

BDO’s plan to purchase shares in MNTC falls under the Bangko Sentral ng Pilipinas (BSP) criteria of a “non-allied” investments by a bank. MNTC is in charge of the rehabilitation and holds concession rights to operate the North Luzon Expressway.

Based on its proposal to the BSP, BDO is buying $30 million-worth of shares in Global Fund, which owns 12.4 percent of MNTC.

Sources said the Monetary Board has approved BDO’s proposed equity investment in MNTC last Thursday during its regular meeting.

The Monetary Board has to approve a bank’s major acquisitions or investments based on Section 50 of Republic Act No. 8791, or “The General Banking Law of 2000.’’

Major investments are those investments in allied or non-allied undertakings including corporate affiliations or structures that give the bank significant interest and/or control, such as stockholdings sufficient to elect one member to the acquired entity’s board of directors. If a bank will invest in a non-allied undertaking, it should have an “exit mechanism” or contingency plan in case the corporation it has invested into “fail or do not prosper.”

BDO, which is the banking arm of the Sy family of the SM Group of Companies, expressed interests in acquiring a stake in MNTC last year, possibly through Leighton International Ltd. which owns 17 percent of the tollways operator. Metro Pacific Tollways Corp. owns majority of MNTC with 67.1 percent. The Lopez Group’s First Philippine Infrastructure Development Corporation used to control MNTC until the Metro Pacific Investment Corp. (MPIC) subsidiary bought the Lopez holdings, making MPIC the majority owner of MNTC.