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Samsung to launch Galaxy S25 series phones in the Philippines on Feb. 14

THE LOGO of Samsung Electronics is seen at its office building in Seoul, South Korea, March 23, 2018. — REUTERS

SAMSUNG Electronics Co. has unveiled its Galaxy S25 series smartphones, headlined by its flagship handset Galaxy S25 Ultra, which leverage artificial intelligence (AI) technologies for user personalization.

Officially launched at Samsung’s Galaxy Unpacked event on Jan. 22, the Galaxy S25 series smartphones — namely the flagship S25 Ultra, the S25+ and the S25 — will be available in the Philippines starting Feb. 14. The pre-order period will run from Jan. 23 to Feb. 13.

“Galaxy S25 is intelligently engineered to understand your needs and your routine, enabling groundbreaking mobile AI experiences,” Isabelle Kim, product marketing manager for flagship at Samsung Philippines, said at a press preview event last week.

“It interprets context, usage patterns and user preferences to provide intuitive experiences unlike ever before.”

The S25 Ultra comes in four colors: Titanium Silverblue, Titanium Whitesilver, Titanium Gray, and Titanium Black, as well as three other online exclusives. Its price starts at P84,990 for the 256GB model, while the 512GB variant is priced at P93,990 and the 1TB model costs P110,990.

Meanwhile, the S25+ and S25 are available in the colors Navy, Icyblue, Mint, and Silver Shadow, and three online exclusives.

Pricing for the S25+ starts at P67,990 for the 256GB variant, with the 512GB model costing P76,990. For the S25, retail prices are at P51,990 (256GB) and P60,990 (512GB).

Samsung’s latest device line will feature new Galaxy AI features, led by AI Select, which makes actionable suggestions to users.

Meanwhile, the improved Circle to Search feature now has enhanced recognition of text, images and even sounds in videos.

The phones’ “human-like” AI agents allow for a conversational search experience using natural language as well as easier device settings configuration via a Personal Concierge.

The integrated AI platform also lets users complete multi-step tasks with a single click and without needing to switch between apps via Cross App Action, which can be used across Samsung and Google apps, as well as other third-party apps like Spotify and WhatsApp.

Among the phones’ personalized AI features is Now Brief, which provides users personalized insights based on their needs and their routines, including reminders, most used apps, and actions.

The Galaxy S25 series devices also come with Post-Quantum Enhanced Data Security to ensure cloud and on-device protection while using AI.

As for hardware, the S25 series devices are powered by a Snapdragon 8 Elite for Galaxy chipset, which Samsung said will boost users’ AI experience and assures power efficiency and enhanced visuals. They run on One UI 7.

The phones feature improved heat dissipation through enlarged vapor chambers for thermal efficiency.

The flagship Galaxy S25 Ultra has an updated rear camera setup, as it features a new 50-megapixel (MP) ultra-wide camera, an upgrade from the 12-MP ultra-wide lens in its predecessor, the Galaxy S24 Ultra.

The new sensor’s increased resolution and brightness range will let users take more detailed macro shots, Samsung said.

The new smartphone also has a 200MP main camera and a 50MP telephoto lens.

The S25 Ultra’s cameras are likewise powered by Galaxy AI, with its improved Next Generation Provisual AI engine allowing for less noise when taking videos at night or in low-light conditions. The phone also has fine-tuning features for video, including 10-bit HDR and an Audio Eraser to eliminate or tone down noise.

For photos, the phone comes with Visual Aperture and Galaxy Log features powered by AI, as well as AI editing tools.

Samsung said the Galaxy S25 Ultra is the thinnest ever S series device, with a slimmer and thinner bezel compared to its predecessor flagship.

The phone has an improved titanium build and comes with a Corning Gorilla Armor 2 glass display with drop protection and scratch resistance. — Beatriz Marie D. Cruz

Incentives eyed for semiconductor firms

Latest data showed the Philippines’ semiconductor exports fell by an annual 33.1% to $1.91 billion in November, amid soft global demand. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. is pushing for more incentives for the semiconductor industry, following a meeting with the Private Sector Advisory Council (PSAC) on Tuesday.

At the meeting with the PSAC-Education and Jobs Sector Group (PSAC-EJSG), Mr. Marcos emphasized the importance of the semiconductor industry, as semiconductors account for a significant portion of Philippine exports.

“Actually, we really need to push on the semiconductor industry. It’s because, again, it’s not something that we had in mind but the situation — considering how much money we make as the income we get from exports already,” he was quoted in a statement as saying during the meeting.

The Palace said the PSAC-EJSG recommended a “review” of the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to include a specific provision on incentives for the semiconductor industry.

Mr. Marcos signed the CREATE MORE Act into law in December. The interim IRR was also released last month.

“We’ll do it through the IRR, perhaps. Because it took us such a while to get the CREATE MORE in the first place,” Mr. Marcos said. “So maybe it’s just another incentive scheme.”

The President said there is no specific provision on incentives for the semiconductor companies under the CREATE MORE law, which provides incentives for other industries such as car manufacturing.

The PSAC-EJSG presented a “roadmap” for the semiconductor and electronics industry during Tuesday’s meeting. It also recommended the creation of a National Education and Workforce Development Plan, although there were no details provided.

Electronics is the single-biggest export industry in the Philippines, accounting for nearly 60% of total Philippine merchandise exports. The bulk of these exports are finished semiconductor products that are incorporated into electronic devices.

Latest data showed semiconductor exports fell by an annual 33.1% to $1.91 billion in November, amid soft global demand.

“The push for incentives for semiconductor locators aligns with the Philippines’ goal of strengthening its position in the global semiconductor value chain, which is critical for economic growth, technological advancement, and job creation,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said.

“Positioning the Philippines as a hub for semiconductor production or assembly can yield long-term economic benefits,” he said in a Facebook Messenger chat.

He said neighboring countries like Vietnam, Malaysia, and Thailand offer competitive incentive packages for semiconductor locators, “creating pressure for the Philippines to follow suit.”

“The CREATE Act is designed to offer rationalized tax incentives to attract and retain investors. However, it may not explicitly address the unique needs of semiconductor locators, such as the capital-intensive nature of the industry,” said Mr. Rivera.

“That is, semiconductor firms require significant upfront investments in technology and facilities.”

He noted that semiconductor projects often take years before getting returns, “necessitating longer or more flexible incentive structures.”

“Adding specific provisions to the IRR for semiconductor locators would signal that the Philippines recognizes these needs and is committed to becoming a global player in this space,” he said.

Think thank InfraWatch convenor Terry L. Ridon said incentives are insufficient to ensure the semiconductor sector’s expansion “for as long as other binding constraints remain unresolved, such as corruption, high energy prices and red tape.”

Mr. Ridon noted high energy prices remain the biggest threat to the Philippines’ semiconductor sector.

Mr. Marcos signaled incentives for semiconductor locators after US President Donald J. Trump took office on Jan. 20.

The US and the Philippines under then President Joseph R. Biden have committed to boosting their semiconductor partnerships, particularly under the US CHIPS Act.

The Department of Trade and Industry has said it is eyeing to produce 128,000 engineers for the local semiconductor industry with support from the US under the CHIPS Act.

The Philippine Economic Zone Authority’s (PEZA) economic zones are home to 482 electronics manufacturing services and semiconductor manufacturing services (EMS-SMS) companies that provide critical back-end support to their principal clients in the US.

“Most of these are longstanding American RBEs (registered business enterprises) that have made the Philippines their manufacturing hub in the region,” PEZA Director-General Tereso O. Panga said.

He noted that many of these companies have received support from the CHIPS Act’s International Technology Security and Innovation Fund to “enhance the host country’s electronics’ manufacturing capability and supply-chain resilience.”

The Semiconductor and Electronics Industries in the Philippines Foundation, Inc.  in December said exports of semiconductor and electronic products are likely to be flat in 2025 amid a “tough business environment and low demand.”

“The semiconductor industry has been our bread and butter as far as exports go. And yet, this has remained a low value-added product with very high costs since a large part of the imports are being imported,” Ateneo de Manila University economics professor Leonardo A. Lanzona said via Messenger chat.

He said further incentives for semiconductor players “will only increase the opportunity costs of this product since we will forego the production of alternative products that may also deserve such incentives.”

“Worse, changing the law simply for semiconductor locators indicates that this product is no longer competitive with its survival simply dependent on government support,” he added. “This is the opposite of trade efficiency or market discipline.”

Gov’t set to allow unsolicited bids for state assets — DoF

DOF.GOV.PH

THE Department of Finance’s (DoF) Privatization and Management Office (PMO) will release next month new guidelines allowing for the submission of unsolicited bids for state assets. 

“We are looking to publish the privatization guidelines. It has been approved. Only the actual publication is left. Our publication in the Official Gazette has been moved by another month,” Finance Undersecretary Catherine L. Fong told reporters at a briefing on Jan. 16.

The Privatization Council (PrC) approved the Guidelines on the Privatization and Disposition of Government Assets on Sept. 6 last year. The rules, which seek to institutionalize the PrC’s policies and decisions over the years, will be published in newspapers by next month.

Ms. Fong said among the key revisions is allowing unsolicited offers for assets in the PMO’s database. She noted 28,000 titles in the PMO database are small assets of about 200 square meters, which can be accessible to “ordinary Filipinos.” 

“This is an innovation — the first time allowing unsolicited proposals,” Finance Secretary Ralph G. Recto said.

Aside from unsolicited proposals, the new guidelines will also allow negotiated sales and direct purchases by present occupants of the residential properties, and the accreditation of real estate brokers to assist in the sale of properties.

This will help the government meet its P101.01-billion privatization revenue goal for this year, which is more than double the P42.12-billion target in 2024.

PMO is the marketing arm of the government concerning transferred assets, government corporations, and other properties assigned to it by the PrC.

Ms. Fong said unsolicited proposals will be published and can be subject to a challenge, similar to public-private partnership (PPP) projects.

Most of the assets are located in the province. She said the PMO is exploring options that would allow more Filipinos to purchase their own homes.

“The Land Bank of the Philippines is also interested in joining. They want to have a fire sale with their repossessed assets. There are a lot of government assets that are too small,” Ms. Fong said.

Meanwhile, the government also hopes to dispose of idle assets that require high maintenance costs and face legal challenges.

According to DoF data, P4.4 billion was collected from the PMO disposition efforts in 2024, “with proceeds coming from the litigated assets, income from leases and dividend income.” This was significantly higher than P1.94 billion in 2023.

Among the assets to be sold are the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex, which has a minimum valuation of $300 million.

It will be auctioned off in April by the Power Sector Assets and Liabilities Management Corp. (PSALM). CBK has a 25-year build-rehabilitate-operate-transfer contract with state-owned National Power Corp. that will expire in 2026.

Mr. Recto said this could reach $1 billion if it becomes a part of the green energy auction. The DoF is working with the Department of Energy to increase the value of the assets.

The DoF is also planning to sell the property where the amusement park Star City is located in Pasay City.

“We want to sell Star City, but it is tied to Sukuk bonds. We have to balance the Treasury’s need for assets for Sukuk bonds, which is not easy to replace because it requires leasing, not just any property,” Ms. Fong said.

Star City is owned by Star Parks Corp., a subsidiary of Elizalde Holdings Corp. It is under a lease agreement with Philippine International Corp., which will expire in 2026.

If replacement is an option, Ms. Fong said the PMO will choose an asset without a lease, but it has to match the P15-billion zonal value of the Star City property.

Filomeno S. Sta. Ana III, cofounder and coordinator of Action for Economic Reforms said the government’s reliance on privatization is “a lazy way of raising revenues.”

It is a “one-off source of revenues and thus unsustainable,” he said.

Instead, the DoF should raise more “efficient” taxes.

“A good example of an efficient tax is the excise tax on harmful products like tobacco, vape/e-cigarette, alcohol, soda and ultra processed foods.” he said. 

Mr. Sta. Ana said that the overall revenue collection is getting a boost from nontax revenue, including the fund transfers by the Philippine Health Insurance Corp., Philippine Deposit Insurance Corp. and other state-run agencies. These fund transfers are now being challenged in the Supreme Court.

Meanwhile, the DoF said around P23.94 billion in private capital through PPP projects is expected to be mobilized in 2025.

It noted that 97 PPP projects were added to the pipeline after the PPP Code was signed into law in December 2023. The implementing rules and regulations took effect on April 6, 2024.

These PPP projects include the Cavite Bus Rapid Transit System, School Infrastructure Project Phase III, and the Department of Education-Senate Teacher’s City. — Aubrey Rose A. Inosante

DBS sees below-target PHL growth until 2026

Decorations for the Lunar New Year are seen at a mall in Quezon City. — PHILIPPINE STAR/NOEL B. PABALATE

PHILIPPINE gross domestic product (GDP) growth may fall below the government’s target for this year and next, DBS Bank said, even as easing inflation and lower interest rates are expected to boost consumption.

In its ASEAN-6 2025 Outlook, DBS said Philippine GDP is expected to grow by 5.8% this year and by 5.6% in 2026, missing the government’s 6-8% target for both years.

Philippine GDP likely expanded by 6% in 2024, at the low-end of the 6-6.5% goal.

“Growth momentum is expected to get a hand from easing inflation into 2025, which will provide relief to household purchasing power and a cut in rice tariffs which lowers the staple’s prices,” DBS said.

DBS forecasts headline inflation to average 2.6% in 2025 and 2.4% in 2026.

These projections are much lower than the Bangko Sentral ng Pilipinas’ (BSP) forecasts of 3.3% and 3.5% for this year and the next, respectively.

Headline inflation averaged 3.2% in 2024, well within the 2-4% central bank target.

“Lower borrowing costs will also be a positive for the private sector’s financing needs, including working capital requirements,” DBS said.

“Having raised benchmark rates by the most in the region in the last two years, the BSP cut rates by 75 bps in the second half 2024, notwithstanding pressure on the currency.”

The BSP, which cut ahead of the US Federal Reserve in August, delivered a total of 75 basis points (bps) worth of cuts last year, bringing the benchmark rate to 5.75% by end-2024.

“The BSP had projected a one- to two-year lag period before monetary policy easing impacts the economy, suggesting that rates will maintain a dovish bias into 2025.”

DBS expects the central bank to slash rates by 50 bps this year to bring the key rate to 5.25% by end-2025 and deliver another 50 bps of cuts in 2026 to 4.75%.

“Easing inflation has pushed real rates to strong positive territory, signaling that the regional central banks have room to make policy settings ‘less restrictive,’” it added.

The Monetary Board is set to meet on Feb. 13 for its first policy-setting meeting of the year.

BSP Governor Eli M. Remolona, Jr. has signaled further easing this year as the current policy rate is still in “restrictive territory.”

DBS also noted that the peso volatility last year “did not deter the BSP from cutting rates.”

The bank expects the peso to potentially breach the record low and end at P60.2 per dollar by end-2025.

It sees the local unit strengthening to P59 against the greenback at end-2026.

Meanwhile, Manulife Investment Management (Manulife IM) said Philippine economic growth may range from 5.5% to 6% this year.

“We do expect inflation to remain within the target range of 2-4% for 2025 and we do expect the growth environment with benign inflation should be in the range of 5.5 to 6% for 2025,” Manulife IM Asia (ex-Japan) Fixed Income Chief Investment Officer Murray Collis said in an online briefing on Wednesday.

Mr. Collis said further easing by the Fed and the BSP could support the Philippine economy.

“We do think that the Fed as well as the BSP are intending to cut rates this year, which will be supportive for the Philippine markets. For us, when we’re investing onshore in the Philippines, we do think that that backup in the last few months really creates some value and we think that that could potentially be an interesting buying opportunity for investors over the course of this year,” he said.

TRADE PROSPECTS
Meanwhile, DBS said the Philippines is among the least-affected economies in the region by US President Donald J. Trump’s restrictive trade policies.

“ASEAN-6 will be wary of increased protectionism under the new US administration led by President Donald Trump.”

The impact on these economies would depend on the pace of when these policies will be rolled out, it added.

“Trade reliant economies like Vietnam, Thailand, Malaysia, and Singapore are likely to feel the heat from any escalation in tensions between US and China.”

“More domestic-oriented economies like Indonesia and Philippines are likely to experience a shallower impact, although we are mindful of material spillover effects on any direct tariff action,” it added.

Mr. Trump, who was sworn in as US President for a second time on Monday, has vowed to impose tariffs of up to 60% on imports of Chinese goods and 25% for Canadian and Mexican imports, as well as a 10% universal tariff.

However, DBS is expecting a positive trade outlook early this year in the region due to a “frontloading of orders before US-China or US-region tariffs are imposed.” — Luisa Maria Jacinta C. Jocson with inputs from A.M.C. Sy

InstaPay, PESONet transactions surge in ’24

STOCK PHOTO | Image by Pikisuperstar from Freepik

THE VALUE of transactions done via InstaPay and PESONet jumped to P17.42 trillion in 2024, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Central bank data showed transactions coursed through the two automated clearing houses surged by 35.4% last year from P12.86 trillion recorded in 2023.

The rise in transactions was also much faster than the 29.4% annual growth recorded in 2023 versus 2022.

Meanwhile, the combined volume of transactions done via InstaPay and PESONet also soared by 62.2% to 1.5 billion in 2024 from 929.6 million a year prior.

Broken down, the value of PESONet transactions rose by 28.5% year on year to P10.08 trillion from P7.84 trillion.

The volume of transactions that went through the payment gateway also increased by 10.7% to 100.9 million in 2024 from 91.1 million in 2023.

Meanwhile, the total value of transactions done through InstaPay climbed by 46.3% to P7.35 trillion as of December from P5.02 trillion in the previous year.

The volume of InstaPay transactions stood at 1.4 billion last year, surging by 67.8% from 838.6 million in 2023.

PESONet and InstaPay are automated clearing houses that were launched in December 2015 under the central bank’s National Retail Payment System framework.

PESONet caters to high-value transactions and may be considered as an electronic alternative to paper-based checks.

On the other hand, InstaPay is a real-time, low-value electronic fund transfer facility for transactions up to P50,000 and is mostly used for remittances and e-commerce.

Latest BSP data showed digital payments made up 52.8% of the volume of retail transactions in 2023, higher than the 42.1% share in 2022.

In terms of value, 55.3% of retail transactions last year were done online, higher than the 40.1% the year prior.

The BSP wanted at least 50% of the volume and value of retail transactions done online by end-2023 under its Digital Payments Transformation Roadmap.

The increase in digital payments was driven by wider use of online transaction channels among individuals and businesses, the central bank said, with the coronavirus pandemic accelerating this shift.

“The continued double-digit growth in InstaPay and PESONet transactions largely reflects increased online or e-commerce transactions,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

He also cited consumers’ increasing usage of e-wallets and online banking apps, instead of over-the-counter transactions.

The rise in digital payments can also expedite financial inclusion, especially in rural areas, he said.

“Increased financial literacy also enabled and empowered more Filipinos to be part of the banked population, use digital banking facilities and solutions such as InstaPay and PESONet,” Mr. Ricafort said.

The share of Filipinos with bank accounts reached 65% of the adult population in 2022, the BSP earlier said.

“These are also safer without the need for carrying a lot of physical cash notes, provided that safeguards are observed versus cybercrime,” Mr. Ricafort added.

The central bank wants online payments to make up 60-70% of the country’s total retail transaction volume by 2028. — Luisa Maria Jacinta C. Jocson

Cebu Landmasters allots P12B for Luzon entry

CEBULANDMASTERS.COM

VISMIN property developer Cebu Landmasters, Inc. (CLI) is earmarking P12 billion for the initial phases of its two maiden projects in Luzon as the company expands its market presence nationwide.

CLI Chairman and Chief Executive Officer Jose R. Soberano III said the company’s first two Luzon projects consist of a horizontal project and a condominium development.

“We are allotting a total of P12 billion for two towers of the first phase of the condo and phase one of the horizontal project,” Mr. Soberano told reporters during the launch event of the company’s Makati City office on Wednesday.

“Talking of land acquisition alone, that should be in the range of about P5 billion for these two projects. For development, around P2 billion for the first phase. In the verticals, we start with two towers, that’s P5 billion,” he added.

Mr. Soberano said that CLI is likely to launch its first Luzon project by 2026.

CLI is looking at the southern areas of Manila, such as Batangas and Cavite, for its planned horizontal project, Mr. Soberano said.

“The obvious choice would be the southern portion of Manila, such as Batangas and Cavite. These are the usual suspects. We do have standing offers there,” he said.

“If we are positioning on a property, we have to be absolutely certain that by the time we launch it, we have a good percentage of the take-up. Without that certainty, we’d rather not take that,” he added.

Mr. Soberano estimated that the horizontal project could occupy 50 to 100 hectares, offering 5,000 to 10,000 homes.

On the vertical project, Mr. Soberano said that it is expected to be in Metro Manila.

“I think it is a very strategic move to position on one horizontal project and one vertical project. These are not small projects either,” he said.

“Once that kicks off and we feel our confidence, things can move fast as well. We’re not going to hold our punches if we really feel the opportunity is there,” he added.

CLI also opened its first Luzon office, located on the 3rd floor of the new CWC Design Center in Makati City.

CLI’s new Makati office will house its Luzon sales office, investor relations office, and other support departments. It will also have training and conference rooms to facilitate business activities.

“The opening of our Luzon office marks an important milestone for CLI. With this new hub, we are poised to bring our expertise and proven track record in real estate development to the Mega Manila market,” Mr. Soberano said.

“This new office symbolizes our readiness to bring the CLI brand to Luzon, leveraging our experience and expertise to serve a broader market,” he added.

Mr. Soberano said there is a possibility of opening more offices in Luzon as CLI launches more projects on the island.

The company has launched close to 130 projects across 17 cities since being established in 2003. Its portfolio consists of residential developments, offices, hotels and resorts, co-living and co-working spaces, mixed-use projects, and large-scale townships.

CLI shares were unchanged at P2.67 apiece on Wednesday. — Revin Mikhael D. Ochave

Topline cuts IPO size to P900M, eyes Q2 listing

BW FILE PHOTO

By Revin Mikhael D. Ochave, Reporter

CEBU-BASED fuel retailer Top Line Business Development Corp. (Topline) has lowered the size of its planned initial public offering (IPO) to around P900 million from the previous P3.16 billion after talks with potential institutional investors.

Amid adjustments to the IPO, Topline is aiming to be listed on the local bourse by the second quarter of this year, the company said in an e-mailed statement on Wednesday.

The company initially scheduled the IPO’s offer period from Nov. 27 to Dec. 3 last year, with a tentative listing date of Dec. 12. However, it opted to move the offer period to the first quarter of this year to accommodate institutional investors.

Topline said its IPO now consists of up to 2.15 billion primary common shares with an overallotment option of up to 214.84 million secondary shares. Its public float will be around 22% assuming the full exercise of the overallotment option.

The company slashed the indicative offer price to up to 38 centavos apiece from the previous up to 78 centavos per share, subject to a bookbuilding process.

Topline’s revised IPO offering is lower than the previous 3.68 billion primary shares with an overallotment option of up to 368.31 million secondary shares, corresponding to about 30% of total issued and outstanding common shares.

“We appreciate the interest shown by potential investors in supporting our expansion and growth. As such, we’ve adjusted our offer structure to reflect our adjusted capital requirements, and at the same time maintain regulatory compliance,” Top Line Chairman, President, and Chief Executive Officer Eugene Erik C. Lim said.

“We are excited to be the maiden IPO this year and the first company from Metro Cebu to go public in almost a decade,” he added.

Topline said its underwriters “expressed confidence in the offering’s structure, believing that the revised offer structure will position Top Line for strong momentum in the public markets.”

The company tapped Investment & Capital Corp. of the Philippines (ICCP) and PNB Capital and Investment Corp. as the joint lead underwriters and joint bookrunners for the offer.

“We believe that the revised offer structure makes this IPO an attractive investment opportunity for investors seeking strong value and growth given the company’s compounded annual revenue growth rate of more than 49% from 2021 to 2023 — outpacing the growth of constituent companies of the Philippine Stock Exchange Index (PSEi),” ICCP said.

“Topline’s ability to attract interest from institutional investors also speaks of their confidence in the company’s fundamentals and its promising trajectory. We are of the view that Top Line could be a growth catalyst for the capital markets in 2025,” PNB Capital said.

Sought for comment, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message that the move by Topline was expected amid market conditions.

“We actually expected Topline to trim both the size and pricing of its IPO given the changes in market conditions since they initiated the process of going public,” he said.

“The previous valuation was quite high, and the market’s current appetite for risk likely won’t support those valuation levels. The current level of trade activity in the market also can’t support the IPO’s original size,” he added.

The PSEi dropped to 6,265.52 on Jan. 16, its lowest close in nearly seven months or since it ended at 6,158.48 on June 21, 2024, but has since recovered slightly.

On Wednesday, the PSEi improved by 0.12% or 8.13 points to 6,348.34.

“They’re a promising company, but it’s a very tough IPO market, so I’m not surprised that they cut the deal size and price to make the offering more attractive,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“With the stock market trading near the low end of its 52-week range, and given the uncertainties around Trump 2.0 and our midterm elections, it’s generally challenging for companies to do an IPO.

Investors need to see not just a compelling story but a good bargain,” he added.

Topline is engaged in commercial fuel trading, depot operations, and retail fuel in the Visayas region.

The company has two subsidiaries, namely Topline Logistics and Development Corp., envisioned to engage in the importation, trading, distribution, and marketing of petroleum-based products, and Light Fuels Corp., involved in the fuel retail business.

The PSE aims to have six IPOs this year, with Topline among the expected companies to go public.

SM Retail taps Meralco’s MPower for RE supply

PRESENT DURING the ceremonial signing (L-R) were MPower Strategic Account Management Head Rolando Abrojena, Meralco First Vice-President and MPower Head Redel Domingo, SM Retail Executive Vice-President for Controllership and Financial Planning Jonathan Ng, and SM Retail Vice-President for Workplace and Administration Luis Lava, Jr.

SM RETAIL, Inc. has tapped MPower, the local retail electricity supply arm of Manila Electric Co. (Meralco), to supply 100% renewable energy (RE) to its largest establishments in Metro Manila.

MPower will supply renewable energy to SM Retail properties, including the group’s primary headquarters in Pasay City, the company said in a media release on Wednesday.

“SM Retail now stands among our valued customers to benefit from MPower’s competitively priced renewable energy portfolio. As a reflection of our commitment to sustainability, we will continue our efforts to meet the growing demand for renewable energy supply in the contestable market,” said Redel M. Domingo, Meralco’s first vice-president and head of MPower.

Under the Competitive Retail Electricity Market (CREM), qualified power customers consuming at least 500 kilowatts are allowed to choose their energy supplier based on their specific requirements.

“As a key player in the retail industry, SM remains vigilant of its environmental impact and social responsibility. With this partnership with MPower, we are on track with our goal of powering our facilities with renewable energy under CREM,” said Luis Lava, SM Retail’s vice-president for workplace and administration.

Last week, MPower said it has renewed its retail supply agreement with ABS-CBN Corp. to support the power needs of the media company’s operations.

MPower serves contestable customers, including top corporations within Meralco’s franchise area. The company has more than a 25% share of the CREM within Meralco’s franchise area.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

RCBC raises $350M from sustainability bonds

RIZAL COMMERCIAL Banking Corp. (RCBC) has raised $350 million from its offering of five-year sustainability bonds, marking its return to the dollar debt markets after a year.

The five-year senior unsecured fixed-rate sustainability notes were priced at a coupon of 5.375% per annum, RCBC said in a disclosure to the stock exchange on Wednesday.

They will be issued on Jan. 28 and will be listed on the Singapore Exchange Securities Trading Ltd., similar to RCBC’s other two outstanding dollar bond issuances.

“The transaction saw strong interest from a wide range of high-quality Asian and European investors, which allowed the bank to tighten final price guidance to 115 basis points (bps) over the five-year Treasury yield,” the Yuchengco-led bank said.

This was tighter than the initial price guidance of 145 bps over the five-year Treasury yield, it noted.

“This is the tightest pricing spread achieved among RCBC’s US dollar senior unsecured issuances.”

The offer saw a final orderbook of over $1 billion, almost three times the initial offer amount of $500 million, RCBC said.

“The notes saw orders from more than 77 accounts — clearly reflecting global investors’ continued confidence in RCBC and its credit. The orderbook was well diversified with 57% allocated to asset managers, 38% to banks, and 5% to insurance companies and private banks,” it added.

The bank’s latest issuance will mature on Jan. 29, 2030 and was rated Baa3 by Moody’s Ratings.

They will be issued out of RCBC’s $4-billion medium-term note program and under its Sustainable Finance Framework.

“The net proceeds from the issue of the notes will be applied by RCBC to support and finance and/or refinance RCBC’s loans to customers or its own operating activities in eligible green and social categories as defined in RCBC’s Sustainable Finance Framework,” the bank said.

RCBC appointed ING Bank N.V.-Singapore Branch, Morgan Stanley & Co. International plc and SMBC Nikko Securities (Hong Kong) Ltd. as the joint lead managers and joint bookrunners for the offering.

Allen Overy Shearman Sterling LLP was appointed as international legal counsel, while Romulo Mabanta Buenaventura Sayoc & de los Angeles is the domestic legal counsel. P&A Grant Thornton was also tapped as the auditor for the offer.

The mandate for a potential dollar sustainability bond transaction was announced on Monday, with RCBC holding a series of investor calls that day for market feedback. Terms for the offer and initial pricing were announced on Tuesday.

RCBC Chief Executive Officer Eugene S. Acevedo earlier said the bank is looking to tap both offshore and domestic debt markets on a regular basis as part of their new funding strategy to maintain a steady presence in the capital markets. 

The listed bank’s net income decreased by 37.01% to P1.77 billion in the third quarter of 2024. This brought its net profit for the first nine months of 2024 to P6.22 billion, 31.12% lower year on year.

RCBC shares were last traded on Tuesday, closing at P24.05 apiece. — Aaron Michael C. Sy

SteelAsia says P30-B Candelaria plant to produce over 1M tons of steel

STEELASIA MANUFACTURING CORP FACEBOOK

STEELASIA Manufacturing Corp. said it has awarded the engineering, procurement, and construction management (EPCM) contract for its P30-billion plant in Candelaria, Quezon, which is expected to produce over one million tons of structural steel.

SteelAsia awarded the contract to engineering company MCC Huatian Engineering & Technology Co. earlier this week, the company said in a statement on Wednesday.

SteelAsia’s plant in Candelaria is expected to commence commercial operations by 2027 and is projected to create $1.2 billion in annual savings for the country as it will produce heavy structural steel products that are currently 100% imported, it added.

“We will create around 7,000 jobs instead of giving jobs to China, Vietnam, Thailand, Korea, and Japan, our major suppliers,” said SteelAsia Chairman and Chief Executive Officer Benjamin O. Yao.

“Our carbon footprint will also be 90% lower than the traditional steelmaking process because we use recycled scrap metal and employ electric arc furnace technology,” he added.

Once operational, the Candelaria plant is expected to improve delivery lead times to projects to 1-2 weeks from the previous 3-4 months.

“This is a game changer initially for the construction and infrastructure sector since this means quicker project completion and lower costs,” Mr. Yao said.

The Candelaria plant is part of the P82-billion investment the company announced in July last year, along with its plants in Lemery, Batangas, Davao City, and Concepcion, Tarlac.

The company’s investment aims to reduce the country’s reliance on imports, create jobs, and contribute to the country’s economic growth.

SteelAsia has six manufacturing facilities that produce 3 million metric tons of finished steel a year, the company’s website showed. — Justine Irish D. Tabile

Yields on central bank’s term deposits go down as inflation fears ease

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits went down on Wednesday amid easing inflation concerns following the implementation of government measures to tame rice prices.

The BSP’s term deposit facility (TDF) attracted bids amounting to P276.657 billion on Wednesday, below the P280 billion on the auction block as well as the P319.353 billion seen a week ago for a P240-billion offer.

Broken down, tenders for the eight-day papers reached P132.385 billion, lower than the P160 billion auctioned off by the central bank and the P189.095 billion in bids for the P140-billion offer of seven-day deposits seen the previous week. The BSP awarded P129.285 billion in one-week papers.

Accepted yields ranged from 5.735% to 5.825%, a tad narrower than the 5.725% to 5.825% band seen a week ago. This caused the average rate of the one-week deposits to inch down by 0.9 basis point (bp) to 5.7893% from 5.7983% previously.

The one-week tenor was adjusted from the usual seven-day maturity in view of the Chinese New Year holiday on Jan. 29.

Meanwhile, bids for the 14-day term deposits amounted to P144.272 billion, above the P120-billion offering and the P130.258 billion in tenders for the P100-billion offer a week ago. The central bank made a full P120-billion award.

Accepted rates were from 5.7888% to 5.8675%, narrower than the 5.75% to 5.91% margin recorded a week ago. With this, the average rate for the two-week deposits declined by 3.28 bps to 5.8347% from the 5.8675% logged in the prior auction.

The central bank has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields went down on Wednesday after the implementation of the maximum suggested retail price (SRP) on imported rice to help reduce local prices, which allayed inflation concerns, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

This week, the maximum suggested retail price on imported rice was implemented in Metro Manila. It imposes a maximum SRP of P58 per kilogram on imported rice with a 5% broken grain content.

The Agriculture department also recently announced plans to declare a food security emergency for rice amid still-elevated retail prices.

This would allow the release of buffer stocks of local rice from the National Food Authority to be sold at subsidized prices.

Benign inflation would support further BSP rate cuts, with markets expecting another reduction as early as the Monetary Board’s first policy meeting on Feb. 13, Mr. Ricafort said.

The review was rescheduled from Feb. 20 previously as BSP Governor Eli M. Remolona, Jr. is set to attend the Financial Action Task Force plenary and meetings in France on Feb. 17-20.

The has slashed benchmark borrowing costs by a total of 75 bps since it began its easing cycle in August, bringing its policy rate to 5.75%.

BSP Governor Eli M. Remolona, Jr. this month said the central bank still has room to continue cutting interest rates as inflation is well within its annual goal, adding that current benchmark borrowing costs remain “restrictive.”

He previously said 100 bps worth of cuts this year may be “too much” amid inflation concerns. — Luisa Maria Jacinta C. Jocson

Jetti plans P1.2-B expansion

JETTI.COM.PH

INDEPENDENT OIL company Jetti Petroleum, Inc. expects to spend around P1.2 billion to establish 80 more stations to achieve its target of 300 stations by 2026, its president said.

“We are embarking on completing or having available 300 stations and, initially, we’re targeting by early 2026; but, of course, we based this on our business review,” Jetti President Leo P. Bellas told reporters during the inauguration of the company’s business center on Monday.

The funding will be mostly financed by banks, with a portion from internally generated funds.

For context, building a four-pump, two-island station would require about P15 million, Mr. Bellas said.

“For this year, we are confident that we can complete and operate an additional 40 stations. So that would bring the number to 260 by December 31, 2025,” Mr. Bellas said.

At present, the company has 220 stations spread nationwide, with a concentration in Luzon and Mindanao.

Its portfolio includes the Jetti Macapagal Building, a six-story business center located at the corner of Diosdado Macapagal Boulevard and Coral Way in Pasay City.

The company resumed operations of its flagship retail station in Pasay City in 2023 after temporarily closing it for renovation for almost four years.

“The reason why we also did this inauguration is because finally the whole ground floor is occupied and they’re operating,” Mr. Bellas said.

The Jetti Macapagal Building features retail outlets and premium office spaces for lease.

“The Jetti Macapagal Building stands as a testament to Jetti Petroleum, Inc.’s dedication to progress, community engagement, and service excellence. It reflects the company’s commitment to not only fueling vehicles but also supporting the aspirations of the people and businesses it serves,” the company said.

Jetti started operations of its first retail service station in 1999 and opened the Macapagal flagship station in 2004. The company began the conversion and renovation works of the property to make it a complex with a gas station in 2019. — Sheldeen Joy Talavera

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