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Treasury rejects all bids for T-bonds as rates soar
The government was not able to secure P30 billion in long-term securities yesterday, its first time to reject all bids in over nine months as rates picked up......»»
T-bonds auction oversubscribed,hits P55B
The Bureau of the Treasury on Wednesday partially awarded bids for the new seven-year Treasury bonds or T-bonds. The coupon rate was set at 6.375 percent. The auction was 1.8 times oversubscribed as the total submitted bids amounted to P55.1 billion. The BTr raised P24.8 billion out of the P30-billion offering. In a comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the average auction yield was higher than the comparable 7-year PHP Bloomberg Valuation Service or BVAL yield at 6.28 percent. Rate traced “This is still higher compared to 6.097 percent in the previous 7-year Treasury bond auction on 20 June 2023 as the PHP BVAL yields corrected higher since June 2023 due to higher US Treasury yields since then,” he said. Ricafort traced the rate results to the hawkish signals locally in terms of possible local policy rate hikes to better manage inflation. Headline inflation settled at 5.4 percent in June, still above the government’s 2 percent to 4 percent target. “(This) is also after hawkish local signals recently, particularly on no possible premature local policy rate cut and even a possible local policy rate hike amid market expectations of a possible +0.25 Fed rate hike on July 26, 2023, but reduced odds of a second Fed rate hike after July 26, 2023,” Ricafort said. The Bangko Sentral ng Pilipinas maintained key rates in the last two consecutive rate-setting meetings. The Monetary Board is scheduled to hold its next rate setting meeting on 17 Aug. The post T-bonds auction oversubscribed,hits P55B appeared first on Daily Tribune......»»
Risky exposure (1)
In a review of banks’ exposure in energy projects, undertaken by the environmental think-tank Center for Energy, Ecology and Development, conglomerate San Miguel Corporation’s energy arm SMC Global Power Corp., which maintains a host of power plants, including those using coal as fuel, received prominent space. In the discussion, the dilemma that banks face was brought to light amid their financial exposure to SMCGP that may be affected by the maneuvers of SMC and its subsidiaries to, ironically, turn around the unfavorable state of the group. It said that apart from issues of supply, local fossil fuel companies are also feeling the impact of volatile fuel prices. SMCGP, the report said, suffered P15 billion in losses in 2022 due to the rising prices of fossil fuel. In May 2022, two of SMCGP’s subsidiaries filed motions for price adjustment before the Energy Regulatory Commission due to the rising fuel costs that they claimed they could no longer bear and wanted to pass on to consumers. The motions, according to the report, have since been denied, and SMC has brought the matter up to the Court of Appeals. Following the ERC denial of the price adjustment petitions, a Bloomberg intelligence report was released finding that SMCGP risks a funding shortfall as high as $1 billion by next June. The same intelligence report also projected that SMCGP’s current coal exposure might make refinancing more difficult and more costly, as investors increasingly shun coal-fired power plants as a result of the international effort to remove polluting fossil fuel as an energy source. Last year also saw SMC withdrawing the ECC applications for the three proposed fossil gas projects in the Visayas, including a liquefied natural gas project in Negros Occidental that had originally targeted a 2022 commissioning date. Despite its already large fossil fuel portfolio, the report said SMCGP issued Series K Bonds due in 2025, Series L. Bonds due in 2028, and Series M. Bonds due in 2032 with a principal amount of P30 billion and an oversubscription option of up to P10 billion in July 2022. Part of the proceeds of these bonds are allocated for SMCGP subsidiary-owned fossil fuel projects, including the Mariveles Power Generation Corporation’s four 150 megawatt or MW circulating fluidized bed coal-fired power plant in Mariveles, Bataan and Excellent Energy Resources Inc.’s 1.3 gigawatt or GW combined-cycle LNG power plant in Barangays Ilijan and Dela Paz Proper, Batangas. Recently, however, Manila Electric Co. or Meralco announced the termination of its power supply agreements with two subsidiaries of SMCGP, Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd. The same power supply agreements would have secured revenue for the two SMCGP power plants to be financed by these bonds. Since the contracts were terminated, these subsidiaries would have to go through the competitive selection process again, where it will be up against fossil fuel and renewable energy or RE generation projects. According to the CEED report, the banks that purchased bonds had essentially exposed themselves and their shareholders, to whom they have a fiduciary responsibility, to fossil fuel projects “at risk of stranding.” “Changing policy, economic, geopolitical, and energy landscapes in the country and around the world demand that banks and financial institutions pay closer attention to and take the necessary action to mitigate these risks and protect their shareholders.” The report indicated that important developments show the tide turning in renewable energy’s or RE’s favor locally. According to the DoE, the Green Energy auction program will hold its second round of bids in June this year. The country will auction off rights to build 3,600 megawatts or MW of new capacity to be installed in 2024, 3,600 MW in 2025, and 4,400 MW in 2026. In all, this will result in an additional 11,600 megawatts of RE on top of the 2,000 MW auctioned off last year, an unprecedented scale of development for renewables in the country. (To be continued) The post Risky exposure (1) appeared first on Daily Tribune......»»
Government rejects all bids for P50 billion T-bills, bonds
The government was not able to borrow P50 billion through the sale of short and long-term securities as an initial offshoot of another aggressive monetary policy move of the US Federal Reserve......»»
Reissued T-bonds fetch lower rate
Bids for a reissued seven-year Treasury bond fell by about 27 percent as the easing of inflationary pressures pushed rates downward by almost 11 basis points......»»
BPI readies issuance of dollar bonds
The Bank of the Philippine Islands is close to issuing its dollar-denominated bond sale, as it has started a series of fixed income investor meetings......»»
Top Contenders Peaking Ahead of March Madness in AP Top 25 Womens Basketball Poll
The NCAA women’s basketball tournament is quickly approaching, with Selection Sunday less than a week away. Several top teams have already secured automatic bids and.....»»
Steve Lawrence bids farewell
A voice from the past said goodbye last March 7. Singer and actor Steve Lawrence passed away from complications of Alzheimer’s disease in Los Angeles, California, at the age of 88......»»
Government fully awards P30 billion T-bonds at higher rates
The government secured P30 billion in long-term securities yesterday but at slightly higher rates after inflation picked up and ended four months of easing......»»
Tahanang Pinakamasaya bids farewell, 130 employees displaced — reports
Television and Production Exponents (TAPE) Inc.'s "Tahanang Pinakamasaya" has bid farewell, according to reports......»»
Treasury raises P60 billion from T-bonds in February
The government raised P60 billion in long-term securities this month, short of target, as the Bureau of the Treasury focused on the retail treasury bonds......»»
Comelec resets bid submission for SETS
The Commission on Elections moved to Feb. 29 the deadline for the submission of bids for the P1.64-billion Secure Electronic Transmission Services, which will be used in the May 2025 midterm elections......»»
Saso, Pagdanganan power way back into contention
Yuka Saso and Bianca Pagdanganan pounded the long holes of the Siam Country Club’s Old course with their remarkable power as they fired 69 and a 68, respectively, keeping their respective bids alive after 36 holes of the Honda LPGA Thailand......»»
First Gen seeks bids for LNG supply
Lopez-owned First Gen Corp. is seeking bids for the supply of liquefied natural gas for its existing gas-fired power plants in the First Gen Clean Energy Complex in Batangas......»»
Government eyes P30 billion from 30th RTB issue
The government is borrowing at least P30 billion from small creditors as the Marcos administration sets its third offering of retail Treasury bonds (RTBs) to expand state coffers and finance various projects......»»
Mindanao aspirants begin bids in Gov. Jubahib Cup netfest
Promising young talents from the southern regions take center stage in pursuit of titles and ranking points in the Gov. Edwin Jubahib Cup national tennis championships......»»
Ex-New England Patriots Coach Bill Belichick Bids Farewell in Letter
Title: Bill Belichick Thanks Patriots Fans for Unwavering Support in Full-Page Ad Word Count: 305 Boston, MA – Former New England Patriots head coach, Bill.....»»
Comelec: More time to bid for OVCS
Interested parties have more time to submit bids for the online voting and counting system to be used in the May 2025 elections, according to the Commission on Elections......»»
Yap bids Rain or Shine goodbye
Veteran James Yap has parted ways with Rain or Shine, triggering talks of making his swan song elsewhere or him finally calling it a career......»»
Filinvest cleared to sell P10 billion fixed bonds
Gotianun-led Filinvest Development Corp. received yesterday its permit to sell up to P10 billion in fixed bonds consisting of a base offer of P7 billion and an oversubscription option of P3 billion......»»