We are sorry, the requested page does not exist
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......»»
GForest named 2023 national winner of Energy Globe Award in the Philippines
GCash, the Philippines' leading finance app, through its GForest feature, is the 2023 National Winner of the Energy Globe Award in the Philippines......»»
CDC remits P1.80-B to national treasury
CDC remits P1.80-B to national treasury.....»»
‘No new taxes likely until 2028’
The stance of Finance Secretary Ralph Recto against new taxes could extend until the end of the administration as the government will try to focus on improving tax collection efficiency first......»»
Women shaping Philippine monetary policy
Women have made significant strides as leaders in the Philippine financial services industry even as challenges continue to persist. At the helm are two distinguished female members of the Monetary Board (MB) – the policy-setting body of the Bangko Sentral ng Pilipinas (BSP) –both of whom are breaking the bias for women in finance......»»
Ralph Recto’s 4Ms: How to survive the Cabinet – and the role of media
Finance Secretary Ralph Recto gets wise advice on how to survive as a member of the Cabinet, and adds a piece of his own.....»»
Asialink eyes P2.4 billion in truck loans as e-commerce grows
Asialink Finance Corp. is looking at lending as much as P2.4 billion this year to the fast growing market for brand new and used trucks that are essential to the growth of e-commerce and logistics......»»
Philippines, US allot P1.15 billion to fight TB
The Philippines, through the Department of Health (DOH), and the United States government, through the US Agency for International Development (USAID), have teamed up to finance a P1.15-billion campaign against tuberculosis (TB) in the country......»»
Recto sees ‘realistic’ 6-6.5 percent growth for Philippines
Finance Secretary Ralph Recto is looking at a “more realistic” economic growth of at least six to 6.5 percent for this year, with medium-term economic expansion likely to be tempered as well......»»
‘Economic decisions independent from politics’
Finance Secretary Ralph Recto has maintained that his decisions will be separated from his long-standing political background as he pushes for the country’s economic progress......»»
NAIA sale to pay debts
Amid the excitement over the successful privatization of NAIA’s rehab and operation, Finance Secretary Ralph Recto mused about the future of NAIA beyond the 15-year San Miguel concession period......»»
ADB approves USD 100 mln loan to support small and medium-sized enterprises in Sri Lanka
Manila [Philippines], March 19 (ANI): The Asian Development Bank (ADB) has approved a USD 100 million loan to provide small and medium-sized enterprises (SMEs) in Sri Lanka more access to finance and build their resilience to external shocks, such as the economic crisis and climate change. SMEs play a critical role in Sri Lanka's economy, contributing 52 per cent to the country's gross domestic product and employ 45 per c.....»»
E-notice provision, other amendments to SARFAESI, DRTA in pipeline to streamline debt recovery
By Vishu AdhanaNew Delhi [India], March 19 (ANI): The Ministry of Finance has constituted a committee to determine further amendments to the SARFAESI and DRT Acts, including providing legal cover to e-notice for expeditious debt recovery, sources in the ministry said. The committee held several meetings and discussions are in the "advanced stage," sources told ANI. Last month, the finance ministry held extensive discussio.....»»
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......»»