Security Bank raises P13.5 billion from bonds
Security Bank has raised P13.5 billion as it returned to the onshore debt market via the issuance of two-year fixed-rate peso bonds to extend the tenor of the bank’s liabilities and augment its lending business......»»
UnionBank raises P18 billion from bond sale
Union Bank of the Philippines has raised P18.17 billion from the successful dual tranche offering of peso-denominated fixed rate bonds amid strong demand from investors......»»
BPI lists P36.6 billion bonds today
Ayala-led Bank of the Philippine Islands is set to list today P36.6 billion worth of bonds on the Philippine Dealing & Exchange Corp. more than seven times the original size of P5 billion......»»
Robinsons retail unit posts profit rise
Listed Gokongwei group’s Robinsons Retail Holdings Inc. proved its resilience in the first nine months as it reported a core profit of P3.8 billion, up 4 percent. Net sales during the period were at P138.2 billion, which rose by 8.7 percent year-on-year. The company was able to generate growth in net sales and core net earnings despite the impact of inflation on consumption and a challenging base last year which benefited from economic reopening and election-related spending. Core net earnings exclude foreign exchange gains and losses, interest income from bonds, equity in earnings from associates, interest expense related to the Bank of Philippine Islands acquisition financing, BPI cash dividends, and others. The growth in net sales was supported by blended same store sales growth of five percent and store expansions. The core businesses supermarkets and drugstores were the main revenue growth drivers in the first nine months. These two segments accounted for almost 75 percent of Robinsons Retail’s revenues for the period. Meanwhile, a bright spot in the discretionary portfolio was the department store segment, which was able to deliver double-digit topline growth due to back-to-school and continued out-of-home activities. The company’s consolidated gross profit continued to grow faster than revenues, increasing by 9.4 percent year-on-year to P32.9 billion in the first nine months. This was enabled by improvements in category mix and higher penetration of private label brands. Meanwhile, operating income grew by 3.7 percent year-on-year to P6.1 billion. Net income attributable to equity holders of the parent company fell by 41.4 percent year-on-year to P2.6 billion until September. The decline in net income to parent was weighed by equitized losses from minority startup investments which continue to ramp up, the derecognition of Robinsons Bank’s net income under equitized earnings following the ongoing merger with the Bank of the Philippine Islands, interest expense from the acquisition financing of the BPI shares that were purchased earlier this year, and the absence of cash dividends from BPI in the third quarter of 2023. Dividends set BPI has historically paid dividends in the second and fourth quarters of each year. The expected cash dividends from BPI in the fourth quarter should fully cover for the acquisition related financing interest expense for the purchase of the BPI shares. “Our defensible business model has enabled us to continue growing and remain relevant among Filipino consumers. This is notwithstanding near-term macroeconomic challenges, particularly the impact of inflation on consumer sentiment. These headwinds are temporary, in our view, and we thus remain positive on the long-term potential of the domestic retail industry given the Philippines’ attractive demographics. We will continue to invest with a long-term view and in a sustainable manner — core strategies that we firmly believe will translate to greater stakeholder value,” Robina Gokongwei-Pe, president and CEO of Robinsons Retail Holdings Inc., said. The post Robinsons retail unit posts profit rise appeared first on Daily Tribune......»»
FLI debt papers get top PhilRatings grade
The proposed P10-billion bond float of property developer Filinvest Land Inc., or FLI, has been assigned the highest credit ratings and stable outlooks by the Philippine Rating Services Corporation, or PhilRatings. FLI’s proposed bonds, amounting to P10 billion with a P2-billion oversubscription allowance, were assigned an issue credit rating of PRS Aaa. The high rating was also assigned to FLI’s outstanding bonds, totaling P35.4 billion. Proceeds from the issuance will be used for capital expenditures and debt refinancing. “We are delighted to receive a PRS Aaa rating from PhilRatings for our proposed bond issuance. This rating reflects our healthy fundamentals and underscores our constant focus on growth and financial sustainability,” Tristan Las Marias, FLI president and chief executive officer, said. PRS Aaa signifies the highest credit quality with minimal risk. The capacity to meet financial commitment is extremely strong under the grade. Outlook stable PhilRatings also issued a stable outlook on PhilRatings. An outlook gives a glimpse on the direction of any rating change within one year. A Stable outlook means the rating will likely be unchanged in the next 12 months. PhilRatings said it took “into account the following key considerations: FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion; its sound growth strategies; its improved revenues and operating cash flow, supported by more than satisfactory liquidity and interest coverage” for the outlook. For 2023, FLI will launch condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal. FLI will also accelerate the development of its township projects in East Town in Cainta, Rizal; Timberland Heights in San Mateo, Rizal; Ciudad de Calamba in Calamba City, Laguna, The Wood Estates in Trece Martires City, Cavite, and Palm Estates in Bacolod City, Negros Occidental. The FLI townships will include residential, commercial, transportation, and school components to create a self-sufficient environment that considers the needs of residents and customers in mind. For malls, FLI is currently constructing Marina Town in Dumaguete City which will open by end-2023, and new malls in Filinvest Mimosa+ Leisure City and Activa Cubao which will open by end-2024. These will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area, or GLA, bringing FLI’s nationwide retail GLA to 300,000 square meters. The post FLI debt papers get top PhilRatings grade appeared first on Daily Tribune......»»
Filinvest Land bonds earn top credit score, stable outlook from PhilRatings
The proposed bond issuance of full-range developer Filinvest Land Inc. (FLI) has been assigned the highest issue credit ratings and stable outlooks by the Philippine Rating Services Corporation (PhilRatings). FLI’s proposed bonds, amounting to P10 billion with a P2 billion oversubscription option, were assigned an issue credit rating of PRS Aaa. The same PRS Aaa rating was also assigned to FLI’s outstanding bonds, totaling P35.4 billion. Proceeds from these bonds will be used for capital expenditures and debt refinancing. "We are delighted to receive a PRS Aaa rating from PhilRatings for our proposed bond issuance. This rating reflects our healthy fundamentals and underscores our constant focus on growth and financial sustainability. We are grateful for PhilRatings’ trust and confidence in Filinvest Land and aim to continue building the Filipino dream through our various property developments,” said Tristan Las Marias, FLI president and chief executive officer. Obligations rated PRS Aaa (the highest rating assigned by PhilRatings) are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong. Each of the ratings was also assigned an Outlook of Stable. An Outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public. A "stable outlook" means the rating will likely be unchanged in the next 12 months. According to PhilRatings, the assigned credit ratings "take into account the following key considerations: (1) FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion; (2) its sound growth strategies; (3) its improved revenues and operating cash flow, supported by more than satisfactory liquidity and interest coverage,” among other factors. For 2023, FLI will launch condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal. FLI will also accelerate the development of its township projects in East Town in Cainta, Rizal; Timberland Heights in San Mateo, Rizal; Ciudad de Calamba in Calamba City, Laguna, The Wood Estates in Trece Martires City, Cavite, and Palm Estates in Bacolod City, Negros Occidental. These FLI townships will include residential, commercial, transportation, and school components to create a self-sufficient environment that considers the needs of residents and customers in mind. For malls, FLI is currently constructing Marina Town in Dumaguete City which will open by end-2023, and new malls in Filinvest Mimosa+ Leisure City and Activa Cubao which will open by end-2024. These will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area (GLA), bringing FLI’s nationwide retail GLA to 300,000 square meters. FLI is also present in the industrial park and ready-built factory leasing businesses with its Filinvest Innovation Parks in New Clark City, Tarlac, and Calamba City, Laguna. Last 19 August, FLI broke ground on the 25-hectare Filinvest Innovation Park Ciudad de Calamba, an expansion of the 50-hectare Filinvest Technology Park in Ciudad de Calamba. FIP-CDC is envisioned to become a stage for new and relevant products that will catalyze progress in the local community. The post Filinvest Land bonds earn top credit score, stable outlook from PhilRatings appeared first on Daily Tribune......»»
EastWest Bank eyes P30 billion bond offering
East West Banking Corp. is raising up to P30 billion through the issuance of bonds in the next five years to support asset growth, diversify funding sources and refinance maturing obligations......»»
BSP posts deficit of $53M
The country's balance of payments (BoP) posted a narrower deficit in July as the government due to proceeds of the national government's foreign currency-denominated debt from commercial sources, the Bangko Sentral ng Pilipinas (BSP) reported. Data from BSP showed that the country's BOP position hit a deficit of $53 million in July, from a deficit of $1.8 billion a year ago. "The BOP deficit in July 2023 reflected net outflows arising mainly from the National Government's (NG) payments of its foreign currency debt obligations," BSP wrote in its accompanying statement. The central bank added that the cumulative BOP level for January to July was a $2.2 billion surplus, a reversal from the $4.9 billion deficit recorded in the same period a year ago. BSP said the reversal mainly reflected the improvement in the balance of trade and the sustained inflows from personal remittances, net foreign borrowings by the NG, trade in services, and foreign direct investments. Meanwhile, the gross international reserves (GIR) level increased to $100.0 billion as of end-July 2023 from $99.4 billion as of end-June 2023. "The latest GIR level represents a more than adequate external liquidity buffer equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income," BSP said. "Moreover, it is also about 5.9 times the country’s short-term external debt based on original maturity and 4.1 times based on residual maturity," it added. In an emailed commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the country's BOP data could still be supported by the country's structural US dollar inflows, such as foreign direct investments and overseas Filipino remittances. He added that the higher GIR in July 2023 could still support the country's "relatively stronger external position," which fundamentally supports the country's relatively favorable credit ratings. For context, the country's sovereign bonds received a "Baa2" rating from Moody's Investors Service, "BBB+" from S&P Global Ratings, and "BBB" from Fitch Ratings. The three debt watchers gave the Philippines a "stable outlook," indicating that there won't be any changes to the rating in the next 12 to 18 months. The post BSP posts deficit of $53M appeared first on Daily Tribune......»»
Philippines’ Marcos signs $9 bn wealth fund into law
Philippine President Ferdinand Marcos on Tuesday signed into law a bill creating a $9 billion sovereign wealth fund aimed at boosting economic growth and infrastructure spending, but critics warned it will be prone to misuse. Marcos had pushed Congress for swift approval of the bill, which was filed by his son and cousin late last year. During a signing ceremony at the presidential palace, Marcos said the fund would "leverage a small fraction" of the government's money without adding to the country's debt burden. "We will leverage on a small fraction of the considerable but underutilized investable funds of government and stimulate the economy without the disadvantage of having additional fiscal and debt burden," Marcos said, less a week before he is due to deliver his second State of the Nation address. But a small group of protesters rallied near the palace in opposition to the law, claiming the fund was a "deception" and would put public money "in danger". The 500-billion-peso "Maharlika Investment Fund" will draw most of its funds from the national government, including the central bank, gaming revenue and two state-owned banks. Private banks and companies will also be allowed to invest. The original proposal was for a $4.9 billion fund that would be partly bankrolled by state-run pensions for government and private-sector workers, sparking public fears that retirement savings could be put at risk. The final version of the bill approved by Congress in May said pension funds would not have to contribute. The fund will be allowed to make a wide range of investments, including in corporate bonds, equities, joint ventures, and infrastructure projects. Marcos said Tuesday the fund would help the government achieve its economic growth targets and reduce reliance on foreign borrowings to pay for new roads and bridges. He insisted the fund would be transparent and only top finance professionals would be hired to manage it. "I assure you that the resources entrusted to the fund are taken care of with utmost prudence and integrity," Marcos said. Conventional sovereign wealth funds are seeded by windfall government profits from natural resources such as oil or minerals. The word "maharlika" is widely associated with Marcos Jr's late dictator father and namesake, who presided over widespread human rights abuses and corruption during his two decades in power. He was ousted in 1986. Marcos Sr claimed to have led an anti-Japanese guerrilla unit called Ang Mga Maharlika during World War II, but he has been accused of lying about his war record. mff/amj/dan © Agence France-Presse The post Philippines’ Marcos signs $9 bn wealth fund into law appeared first on Daily Tribune......»»
Highly-leveraged SMGP
San Miguel Corp. predictably won the Court of Appeals decision recently, reversing the Energy Regulatory Commission in its rejection of the petition of its energy arm San Miguel Global Power Corp. or SMGP’s plea for a temporary rate increase. SMGP claims P15 billion in losses from its units South Premiere Power Corp. and San Miguel Energy Corp. as a result of high fuel costs and the supply restrictions from the Malampaya natural gas project. It turns out that SMGP direly needs to be profitable since it is deep in borrowings for its projects. Data supplied to Daily Tribune by the think tank Center for Energy, Ecology and Development showed SMGP has obtained several financing arrangements, such as long-term debts and issuance of Senior Perpetual Capital Securities or SPCS and other debt instruments to facilitate the acquisition of coal-fired power plants and investments in new power plants. For the construction and expansion of coal plants, SMGP has secured the following financial transactions: January 2018, drawing P2 billion from the P44-billion Omnibus Loan and Security Agreement to finance the construction of two 150-megawatt Limay coal-fired power plants; March 2018, $700-million floating interest term loan, $400-million short-term bridge financing loans, $400-million floating interest term loan, and $650-million Redeemable Perpetual Securities for the acquisition of Masinloc Group including two 315 MW Masinloc power plant and the construction of Unit 3 and 10 MW battery energy storage project; January 2019, $35 million from its $525 million Omnibus Expansion Facility Agreement to finance the ongoing construction of the 300 MW expansion of Masinloc Power Plant; November 2019, drawing of an additional $40 million from $525 million OEFA to finance the additional 300 MW Masinloc Power Plant; July 2019, drawing of P978 million from a P2.1 billion 12-year Omnibus Loan and Security Agreement with a syndicate of local banks for the financing of the construction of the Davao Greenfield Power Plant; March 2020, drawing of an additional $43 million to finance the construction of an added 335 MW Unit-3 Masinloc Power Plant; and July 2022, allocation of up to P20 billion from the sale of P30 billion fixed rate bond with an oversubscription option of up to P10 billion. As for its liquefied natural gas-related projects, SMGP has issued debt certificates in the past three years including: October 2020 — $400 million worth of SPCS issued for 100 percent with an initial rate of 7 percent per annum. In-principle approval for the listing and quotation from Singapore Exchange Trading Ltd. December 2020 — $350 million worth of SPCS issued for 102.457 percent with an initial rate of 7 percent, and listed on the SETL; April 2021 — availment of $50 million from the October 2020 loan facility agreement for capital expenditures related to the Ilijan gas-fired power plant and its expansion, financing of LNG importation, and storage facilities, among others; June 2021 — $600 million worth of SPCS issued for 100 percent with an initial rate of 5.45 percent per annum, and listed on the SETL; September 2021 — $150 million worth of SPCS issued for 100.125 percent with an initial rate of 5.45 percent per annum, and listed on the SETL; and July 2022 — allocation of up to P24.5 billion from the sale of P30 billion fixed rate bonds with an oversubscription option of up to P10 billion. In April 2021, SMGP also availed of its $50 million from its term loan facility with a foreign bank executed in October 2020. The proceeds of this loan are intended for the payment of capital expenditures of the Ilijan plant, funding of liquefied natural gas import, storage, and distribution facilities, pre-operating and operating working capital requirements for Battery Energy Storage System projects, and transaction-related fees, costs, and expenses of the facility. The post Highly-leveraged SMGP appeared first on Daily Tribune......»»
Phl mulls Islamic bond issue
The Marcos administration unveiled plans to issue its first Islamic bond or sukuk, in the third quarter of this year to raise additional funds for its economic recovery initiatives, Finance Secretary Benjamin Diokno said. On the sidelines of the Philippine Economic Briefing in Toronto, Canada, on Thursday morning (Eastern Time), Diokno told reporters that the country eyes raising $1 billion through sukuk. National Treasurer Rosalia de Leon, for her part, said the Philippines wants to “penetrate” the Middle East market for Islamic bond issuance. However, she said that the Philippine banks still need a mandate for the transaction. De Leon added that the transaction, which could include two parts with durations of five years and 10 years, respectively, may occur later this year, depending on market conditions. “We are looking at 10 years, but we are also being advised that the sweet spot would be five years,” De Leon said. “We are working on the structure of the notes,” De Leon added. For context, Fitch Ratings said in a report earlier this week that the volume of sukuk bonds grew by 10 percent during the first 12 months ending 30 June and even exceeded $800 billion. Fitch Ratings added that the Islamic bonds could pick up in the last quarter of the year. Earlier this month, Diokno said that apart from the Islamic bonds, the government eyes selling US dollar denominated bonds to retail investors to raise $2 billion. In his speech before the PEB, Diokno expressed optimism that the country would reach its target gross domestic product growth rate of six to seven percent this year. He explained that the Philippines is among Asia’s “fastest-growing economies,” beating growth expectations in the first quarter. Gross domestic product in the three months through March rose 6.4 percent from a year earlier. Diokno added that the World Bank and International Monetary Fund recently upgraded the growth outlook on the Philippines to six percent for 2023 against the backdrop of slower growth in developed markets globally. He added that the Philippines also maintained investor-grade credit ratings. Fitch Ratings has revised its outlook on the Philippines’ BBB rating from negative to stable due to the country’s growth outlook and some macroeconomic policy framework. However, Diokno said inflation remains a concern for the country’s economic managers as the Philippines’ inflation eased for the fifth consecutive month in June 2023. The latest data showed that the country’s inflation rate hit 5.4 percent, down from 6.1 percent in May. “This slowdown in inflation suggests that the government’s inflation mitigating measures are gaining ground,” Diokno said. “In terms of policy, the Philippine government is continuously harmonizing efforts to ensure a timely analysis of the demand and supply of key commodities,” Diokno added. The post Phl mulls Islamic bond issue appeared first on Daily Tribune......»»
Phl eyeing to raise $1-B in Islamic bonds to fund budget deficit — Diokno
The Philippines plans to issue its first Islamic bond, or sukuk, in the third quarter of this year to fund its budget deficit, Finance Secretary Benjamin Diokno said. On the sidelines of the Philippine Economic Briefing (PEB) in Toronto on Thursday morning (Eastern Time), Diokno told reporters that the country eyes raising $1 billion in Islamic bonds. Treasurer Rosalia de Leon, for her part, said the Philippines wants to "penetrate" the Middle East market. However, she said that the Philippine banks still need to have a mandate for the transaction. De Leon mentioned that the transaction, which could include two parts with durations of 5 years and 10 years, respectively, may occur later this year, depending on market conditions. “We are looking at 10 years, but we are also being advised that the sweet spot would be five years,” de Leon said. "We are working on the structure of the notes," de Leon added. For context, Fitch Ratings said in a report earlier this week that the volume of suksuk bonds grew by 10 percent during the first 12 months ending 30 June and even exceeded $800 billion. Fitch Ratings added that the Islamic bonds could pick up in the last quarter of the year. Apart from the Islamic transaction, Diokno said earlier this month in his weekly talk to reporters that the government eyes selling US Dollar denominated bonds to retail investors raising $2 billion. Meanwhile, Diokno expressed his optimism in his speech during the PEB that the country will reach its target gross domestic product (GDP) growth of six to seven percent this year. He explained that the Philippines is among Asia's "fastest-growing economies," beating growth expectations in the first quarter. Gross domestic product in the three months through March rose 6.4 percent from a year earlier. Diokno added that both the World Bank and International Monetary Fund both upgraded the growth outlook on the Philippines just recently to 6 percent for 2023 against the backdrop of slower growth in developed markets globally. He added that the Philippines also maintained investor-grade credit ratings. For context, Fitch Ratings revised its outlook on the Philippines' BBB rating from negative to stable due to country's growth outlook and some macroeconomic policy framework. However, Diokno said inflation remains a concern for the country's economic managers as the Philippines' inflation eased for the fifth consecutive month in June 2023. The latest data showed that the country's inflation rate hit 5.4 percent, down from 6.1 percent in May. "This slowdown in inflation suggests that the government's inflation mitigating measures are gaining ground," Diokno said. "In terms of policy, the Philippine Government is continuously harmonizing efforts to ensure a timely analysis of the demand and supply of key commodities," Diokno added. The post Phl eyeing to raise $1-B in Islamic bonds to fund budget deficit — Diokno appeared first on Daily Tribune......»»
Security Bank raises P18.5 billion from over subscribed bonds
Security Bank Corp. raised a record P18.5 billion as investors swarmed its bond offering during its return to the domestic bond market......»»
New door opens
The Maharlika Investment Fund bill after months of deliberation is as good as signed. The next step would be the crafting of the implementing rules and regulations or IRR where the nitty-gritty of the law will be addressed. The IRR will be prepared by economic managers. President Ferdinand “Bongbong” Marcos Jr. will then pick the people who will comprise the Maharlika Investment Corp. or MIC that the law mandates will manage the fund. The MIC will manage the sovereign wealth fund that will invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure, based on the provisions of the law. The battleground for the MIF thus returns to the Executive branch as detractors now have the economic managers in their crosshairs as the IRR is being drafted. One of the prime movers of the MIF, Albay Rep. Joey Salceda, said the IRR will flesh out the specifics of the crucial fund build-up and the forming of the MIC, such as the company’s regulation by the Civil Service Commission, the listing of the MIF in the stock market, and allowing multilateral financing institutions like the World Bank and Asian Development Bank to be strategic partners of the MIF. “I congratulate House Speaker Ferdinand Martin Romualdez, Chairman Irwin Tieng, and our Senate counterparts. I will continue to offer what I can by way of prior experience and subject matter expertise in the drafting of the IRR,” Salceda said. Congress ratified the bill before adjourning its session last 31 May but the final copy had to be refined following intrigues hurled by unrelenting critics who deemed it unconstitutional primarily due to the differing prescriptive periods for filing charges related to irregularities. The discrepancies proved to be clerical errors and not a reason to veto the bill as the inconsolable minority had demanded. The MIF comes at a propitious period after the economy grew by 7.6 percent and 7.2 percent in the third and fourth quarters, respectively, and 6.4 percent in the first quarter of this year — numbers that show the country has among the fastest development clips in the world. Finance Secretary Benjamin Diokno expects the MIF to be in full operation before the end of the year. The P125-billion seed fund will be drawn from the Land Bank of the Philippines, the Development Bank of the Philippines, and the national government. The national government’s contribution will come from Bangko Sentral ng Pilipinas dividends, its share in the income of the Philippine Amusement and Gaming Corp., privatization proceeds, and royalties and special assessments. Being looked into is channeling Malampaya natural gas earnings to bolster the fund. The MIF will initially have at its disposal P75 billion by the end of the year, which will come from Landbank and DBP and may forthwith be invested in several ventures or the capital markets. Fund managers estimate a return of over 10 percent just for the initial P75-billion investment. Economic managers envision the MIF as creating a new source of financing for the government which now mainly relies on tax revenues and borrowings to plug the fiscal gap. The MIF will free up the government’s fiscal space as the burden of borrowing is reduced with the sovereign wealth fund augmenting the government’s resources. Another MIF function will be to accelerate investments in development projects such as infrastructure through tie-ups with capitalists and other sovereign funds. The perennial budget deficits, which are the culprit in the debt pile-up, may soon be a thing of the past when the MIF goes full throttle. The post New door opens appeared first on Daily Tribune......»»
Security Bank eyes P8 billion bond issue
Security Bank Corp. is returning to the domestic bond market via the issuance of fixed-rate peso bonds to raise at least P8 billion to expand its funding base and support its lending activities......»»
Security Bank puts up peso bond sale
The bonds will be issued from Security Bank’s P100 billion Peso Bond and Commercial Papers Program......»»
ADB raises $4 billion from global bonds
The Asian Development Bank raised $4 billion from the issuance of two-year and 10-year global bonds, with proceeds to form part of its ordinary capital resources to support developing member countries......»»
ALI secures SEC okay for P50-B bonds float
Ayala Land Inc. or ALI, the property arm of the Ayala Group, has secured the approval of the Securities and Exchange Commission for its P50-billion shelf registration bonds. In a statement on Thursday, the SEC said its approval of ALI’s offering covers bonds that may be issued in one or more tranches within three years. The Commission also noted that despite getting the regulator’s clearance, ALI still needs to comply with the remaining requirements. First tranche For the first tranche, Ayala Land will offer up to P12.25 billion of five-year and 10-year bonds, plus an oversubscription option of up to P5 billion. Additionally, the company will offer up to P4.75 billion of bonds comprising the fourth and final tranche of its existing P50-billion debt securities program, approved by the Commission in 2021. In case the oversubscription option is fully exercised, ALI could net up to P21.73 billion from the offering, which will be used to refinance short-term loans and fund capital expenditures. Bonds offered at face value Based on the company’s latest timetable, the bonds will be offered to the public at face value from 14 to 20 June, in time for listing on the Philippine Dealing and Exchange Trust Inc. on 27 June. Ayala Land engaged BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, East West Banking Corporation, First Metro Investment Corporation, RCBC Capital Corporation and SB Capital Corporation as joint lead underwriters and book-runners for the offer. The post ALI secures SEC okay for P50-B bonds float appeared first on Daily Tribune......»»
Left holding the bag
“A leap of faith into the great unknown.” That’s how a worried Senator Francis Escudero described the venture that two state-owned banks would be legislated into making with the passage of the Maharlika Investment Fund law. That’s the same leap that the Government Service Insurance System and Social Security System were asked to make when the MIF idea was first floated last year, only for the state insurers to be dropped from the kitty pool amid the uproar and backlash. By their very nature, banks loan money and invest, but they have always had the option of where to put in their moolah. However, in the case of the Land Bank of the Philippines and the Development Bank of the Philippines, as captive investors, they’re in for the MIF ride, whether the road is bumpy or not. And that’s what troubles Escudero as he said that “as presently worded” in the Senate’s MIF bill, he could not see provisions detailing the bare minimum that the two banks’ investments — initially P50 billion for LandBank and P25 billion for DBP — would make. Senate hearings have established that the two government banks earn between six to eight percent of loaned or invested money, thus Escudero reasoned out that it may be financially sound to put at seven percent the threshold (or minimum) return on equity of LandBank and DBP. The senator warned that the banks cannot be allowed to go “bankrupt” because of the unsettled RoE and, if I may add, because of a failed venture which, in business, is almost always a possibility as turning in profits. Reading between the lines, the concern may be of the MIF making money but with the two banks being left holding the bag, left out of the profit-sharing due to a rushed MIF law that did not put in black and white a matter as simple as pegging the RoE. Naysayers have warned that the MIF may just end up as one huge corruption enterprise as the corporation tasked to manage the fund invests in a mixed bag of instruments like local and foreign bonds, equities, and foreign currencies. Here is where Congress should ensure that the MIF law would have enough safeguards not only for the two banks but also for the other players, including the government that will be infusing taxpayers’ money and state earnings. If the MIF is to succeed in promoting economic growth and development in the Philippines, the operations of the Maharlika Investment Corporation must be fully transparent. At the same time, whatever financial exposure that LandBank and DBP would have in the MIF should be of such amounts that losing them in a soured investment vehicle would not endanger the fulfillment of their core mandate. LandBank and DBP are primarily tasked to ensure loans are available for farmers and small and medium enterprises which, as admitted by an analyst of a commercial bank, are underserved by private banks and lenders because they are not as profitable. With this concern, there should be a ceiling as to what portion of their financial muscles can LandBank and DBP be allowed to put into the MIF. Again, this is left to the sound judgment of legislators who, with the law they would pass, would tie the hands of both LandBank and DBP. Let’s just hope that the lunacy and vested interests that marked the passage of laws now breaking the backs of Filipinos, like the Oil Deregulation Law, would be absent in the crafting of the MIF. Here, this Contrarian may be too overly optimistic. The post Left holding the bag appeared first on Daily Tribune......»»
Banks urged: Shift backing for RE
Philippine banks must quickly shift project funding for fossil fuels to renewable energy as demand for the latter is seen to skyrocket due to shrinking supplies and rising prices for climate change-inducing fossil fuels, said a report released Tuesday by the Center for Energy, Ecology and Development Philippines. Citing data from the United Nations Intergovernmental Panel on Climate Change, a CEED report says unit costs for renewables have been decreasing at substantial rates globally: 85 percent both for solar energy and lithium-ion batteries and 55 percent for wind energy. Meanwhile, fossil fuel prices for coal and natural gas could further increase due to ongoing armed conflict between oil-rich countries Russia and Ukraine. Meralco, the country’s largest electricity provider, has increased rates to over P10 per kilowatt hour, while 11 new import terminals for liquified natural gas are under negotiations, according to the Department of Energy. Despite these, CEED researchers found 15 Philippine banks have heavily invested in fossil fuel projects through bonds, loans and stocks. Researchers say these will further heat up the planet and harm aquatic resources as the Verde Island Passage is eyed as an alternative to Malampaya. Dirtiest banks Banks were analyzed through CEED’s Fossil Fuel Divestment Scorecard which looked at their green policies and projects to mitigate the impacts of climate change such as drought, floods, and wildfires. New data covered April 2022 to March 2023. The scorecard shows Philippine banks invested $867.08 million within that period, mostly through bonds. Meanwhile, investments for new fossil gas projects reached $930 million. Among them involved the project of SMC Global Power of San Miguel Corporation in Bataan and Batangas which required principal funding of P30 billion and bond oversubscription option up to P10 billion in July last year. Eight out of the 15 banks studied supported this project. However, CEED shared that the SMC energy firm lost P15 billion last year due to higher fossil fuel prices. CEED added that the firm scrapped its application for the three proposed fossil gas projects in Visayas last year. Among the 15 banks, Bank of the Philippines Islands (BPI) was deemed the dirtiest bank, followed by BDO Unibank Inc. CEED researchers say BPI topped the list for the fourth time, with an unclear commitment to reduce coal projects, notably the Atimonan One Energy (A1E) Coal Plant. “In fact, in a letter addressed to CEED dated 1 July 2021, the DOE said that Meralco PowerGen Corporation, which wholly owns A1E, is still in communication with lenders to extend the loan facility given the challenges encountered in securing power supply agreements.” In general, BPI had vowed to reduce outstanding loans to coal projects by 50 percent by 2026 and zero percent by 2032. Meanwhile, BDO had announced to reduce coal exposure also by 50 percent by 2033. CEED, however, criticized the banks for not having detailed plans to achieve their goals. “BPI’s overall score is also slightly higher due to improved sustainability policies. Nonetheless, BPI’s high overall fossil fuel exposure and insufficient policies keep it at the top,” CEED researchers said. For BDO, “Its coal exposure remains significant and its place as the top financier of the fossil gas expansion also garners it a high score. Its rank is lowered, however, by its Sustainability Policies Criteria score,” it said. Model banks Government-owned Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) are the cleanest banks. CEED said that LandBank approved loans amounting to P20.1 billion for renewables. It added that the bank agreed in January to help build Aboitiz renewable energy plants worth P20 billion. Meanwhile, DBP approved a total loan of P600 million for a hydropower plant in Nueva Ecija and other 27 renewable energy projects last year. The post Banks urged: Shift backing for RE appeared first on Daily Tribune......»»
UnionBank eyes P30 billion from peso bond issuance
Union Bank of the Philippines is raising as much as P30 billion after it upsized its peso bonds program by 28 percent......»»