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BSP plans to allow banks to set up Islamic banking units

THE BANGKO SENTRAL ng Pilipinas (BSP) is leaning toward allowing local lenders to set up Islamic banking subsidiaries, as it steps up efforts to promote Shariah-compliant finance in the country.

“The BSP is pushing for an open approach where conventional banks can operate Islamic banking windows or to establish subsidiary Islamic banks,” the central bank’s Deputy Governor Chuchi G. Fonacier told Bloomberg News via e-mail.

The government passed a law in August to promote Islamic finance, which represents a small proportion of the banking industry even though about 10% of the population is Muslim.

The country has 45 universal and commercial bank groups, only one of which — the Al-Amanah Islamic Investment Bank of the Philippines — operates under Shariah principles.

The August law said local banks may be allowed to “engage in Islamic banking arrangements” but left it up to the central bank to work out the details.

Operating fully fledged subsidiaries would allow lenders to offer a wider range of Shariah-compliant services than through a window, which remains part of the parent bank.

The BSP wants to issue the implementing rules for the new law before the end of the year, Fonacier said. Foreign Shariah-compliant banks will also be allowed to operate locally, she added.

“Islamic banking in the Philippines is promising,” she said. — Bloomberg

Wanted: better focus in luring investments

INVESTMENT promotion agencies (IPA) are working on a unified country branding to promote the Philippines as an investment destination.

In a statement on Monday, the Board of Investments (BoI) — an agency attached to the Department of Trade and Industry — said it is spearheading a collaboration among the country’s 19 IPAs to create a unified country brand that they will use in promoting the Philippines to foreign investors.

Trade and Industry Secretary Ramon M. Lopez said that this effort will help these agencies work in unity, instead of independently and in silos.

“We basically want a clear and focused messaging of the Philippines’ value proposition to investors — the country as an investment destination especially during this administration, given the meaningful reforms and solid macro fundamentals with respect to specific sectors,” Mr. Lopez told reporters in a mobile phone message.

“This is for effectiveness and efficient use of government’s limited resources.”

For American Chamber of Commerce of the Philippines, Inc. Senior Advisor John D. Forbes, “It is always important to have a single, unified country message for marketing the Philippines and there are many positive things to be said to attract FDI.”

“But at the same time, FDI is lower this year than the last two, so the group should also study the reasons for this,” Mr. Forbes said in a text message, referring to a 39.1% year-on-year drop in foreign direct investment (FDI) net inflows in the seven months to July.

British Chamber of Commerce of the Philippines Executive Director and Trustee Chris Nelson said in a telephone interview that creating a consistent message would help the chamber in its efforts to attract British investment in the Philippines.

“We are making inroads in making people aware of the Philippines. If the [message] is consistently reinforced, it would keep the Philippines highlighted among British companies,” he said.

Mr. Nelson said the unified branding should highlight a main message that the Philippines is making progress and is “even more open for business,” and emphasize the improvement in ease of doing business in the country.

He added that the IPAs’ communication strategy should also emphasize the growing young, English-speaking workforce in the Philippines.

But Mr. Nelson said that communications should be just one part of the overall promotions strategy. “Communications is… part of the overall plan to show that the Philippines has a lot of potential. We need to communicate the opportunities and the steps the government is taking, but we also need to work together in improving those opportunities,” he explained.

He emphasized the chamber’s call to further improve ease of doing business, and again pushed for amendments to the Retail Trade Liberalization Act that will reduce the required minimum paid-up capital for foreign entrants to the country’s retail sector.

The unified country branding project is part of the Overseas Investment Communication Campaign Strategy being developed with the assistance of the UK Government Communication Service International through its Investment Promotion Programme. — Jenina P. Ibañez

Watchdog gears for dawn raids in fight vs cartels

By Jenina P. Ibañez

A CARTEL, by nature, is clandestine. It’s a secret agreement between companies to cut competition by fixing prices.

Because of this covert nature, a cartel is also hard to catch.

Starting Nov. 12, however, deputized agents in the Philippines can now inspect business premises uninvited, after the Supreme Court upheld the inspection powers of the Philippine Competition Commission (PCC) through a court order.

Global regulators such as the European Commission use dawn raids — so called because surprise visits are usually done in the early morning — to check cartels’ anti-competitive behavior.

Inspections and searches are needed given the clandestine nature of cartels, which are expected to conceal, tamper with or destroy evidence of their anti-competitive conduct, Orlando P. Polinar, PCC Competition Enforcement Office director, said in an e-mail. “Inspections are resorted to when the element of surprise is determined to be an important factor in obtaining evidence.”

The high court on Sept. 10 said the PCC may apply for inspection orders, which may be issued by special commercial courts in the cities of Quezon, Manila, Makati, Pasig, Cebu, Iloilo, Davao and Cagayan De Oro.

The orders may be enforced nationwide.

Under the rules on administrative search and inspection of the Philippine Competition Act, a court must act on the commission’s application within 24 hours.

“That period of 24 hours is reasonable and will not cause undue delay,” Supreme Court spokesman Brian Keith F. Hosaka said in an e-mailed response to questions.

The court order will be effective for up to 14 days and may be extended for another 14 days.

PCC agents can search business premises and land vehicles for books, tax records, documents, papers, accounts, letters, photographs, databases and other electronic information.

Business chambers support the PCC’s inspection powers.

The European Chamber of Commerce of the Philippines (ECCP) trusts the judgment of the high court to take the steps needed to ensure competition measures are faithfully implemented, ECCP President Nabil Francis said in a mobile-phone message. “If properly enforced, this is expected to promote consumer welfare and ensure a level playing field among enterprises,” he said.

The agriculture sector also does not see anything wrong with the commission’s search powers especially after recent concerns about rice middlemen operating cartels to boost retail prices. “We will give the PCC the authority to investigate especially traders, millers and importers who might have benefited from the lifting of the quantitative restriction on rice imports at the expense of farmers,” Philippine Chamber of Agriculture and Food, Inc. President Danilo V. Fausto said.

PCC Chairman Arsenio Balisacan told reporters on Wednesday last week that companies in the food, manufacturing, agriculture and pharmaceutical industries were being investigated.

But some companies are concerned about privacy. While the law allows the PCC to gather evidence, the scope of the probe must be adequately defined, Philippine Chamber of Commerce and Industry (PCCI) President Alegria Sibal Limjoco said.

“Companies should have an effective judicial remedy to seek the removal of privileged documents or intellectual properties that are out of the scope of the investigation order from the seized documents,” she said.

But PCC’s Mr. Polinar said the rules balance due process and strong public interest. “Safeguards have been placed in the rules to ensure that the PCC will only examine, copy, photograph, record or print out information that relate to any matters relevant to an investigation,” he said.

Companies also have a remedy when an inspection order has been improperly implemented, he added.

The agency said a nationwide training program would ensure that inspection orders are properly carried out. It will also coordinate with the Philippine Judiciary Academy in training judges. Seminars for companies and stakeholders will also be held, PCC said.

“The inspections will greatly assist in the conduct of PCC’s investigations, particularly during the covert stage, or when there is a risk that the information being sought will be destroyed or altered,” Mr. Polinar said.

The 1987 Constitution provides that a search or arrest warrant may be issued only once a judge finds probable cause.

Under the PCC’s rules, a search application must describe the subject of the investigation and the premises or offices that it seeks to examine. The commission must also explain to the court how an information being sought is relevant to the investigation of a company for anti-competitive behavior.

“Conducting inspections will send a strong message to the erring entities that the PCC is serious in enforcing its mandate and that entities are better off cooperating,” Mr. Polinar said.

Meralco on track to hit P23-billion core income target for this year

MANILA Electric Co. (Meralco) reported its core net income hit P18.45 billion in the first nine months of 2019. — FILE PHOTO

MANILA Electric Co. (Meralco) expects to post a core net income of at least P23 billion for 2019 as the country’s largest distribution utility has managed to sustain its performance so far this year, company officials said.

“Quite likely the full-year profitability on a core basis of Meralco will be north of P23 billion,” said Manuel V. Pangilinan, the company’s chairman, during a media briefing on Monday to present the third-quarter operating and financial results.

“For the first nine months, the actual core was about P18.5 billion, so it is likely we will achieve the P23-billion-plus core net income for the full-year 2019,” he added.

During the third quarter, Meralco posted a core net income excluding one-off items of P6.14 billion, higher by 5% compared with the level in the same quarter last year. Including one-time gains, its reported net income reached P6.31 billion, up 1% from a year ago.

“The momentum gained in the first half of 2019 was sustained in the third quarter as shown by the 8% increase in sales volume resulting in consolidated growth over 6% for the nine-month period,” said Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, during the briefing.

As of September, Meralco’s core net income hit P18.45 billion, up 11%, while its reported net income was at P18.32 billion, higher by 1% compared with a year ago.

Revenues during the nine-month period rose by 6% to P241.13 billion. Electricity sales accounted for the bulk of revenues at P235.38 billion, or higher by 6% compared with the same period last year.

“Energy sales grew 6.3%, from the previous period last year, at 35,004 gigawatt-hours. Growth was driven by residential [customers], which grew at 8%, followed by commercial at 6% and growth by industrial at 5.1%,” said Ray C. Espinosa, Meralco president and chief executive officer, during the briefing.

He said the nine-month period’s sales performance came at a time of benign inflation, a more favorable interest rate environment, stable foreign remittances and a growing services sector.

Meralco’s customer count as of September grew by 4.2% to 6.82 million. Demand within its franchise area peaked at 7,740 megawatts, which was hit on June 4, and compares with Luzon’s overall peak demand of 11,344 MW on June 21.

In a press release issued during the briefing, Mr. Pangilinan was quoted as saying: “We anticipate sustained growth for Meralco resulting from the country’s continued overall economic expansion as well as growth that will follow the Government’s ongoing infrastructure development programs.”

He also said that the manageable inflation along with increased liquidity in the financial system provides opportunities for growth across all customer segments. He said there is no doubt of a “significant” domestic economic expansion with the foreseen improvement in government public investments in the coming months, and the inflow from remittance of overseas Filipino workers.

On Monday, shares in Meralco slipped by 0.11% to P355.80 each. — Victor V. Saulon

A taste of co-living ‘lyf’ for millennials in Singapore

By Bjorn Biel M. Beltran
Special Features Writer

SINGAPORE — The concept of co-living is nothing new, but the newest addition to CapitaLand’s global real estate empire is trying its best to redefine it.

The Ascott Limited (Ascott), CapitaLand’s lodging business unit, launched the first property under its new “lyf” co-living brand. Lyf Funan Singapore is touted as the largest co-living property in Southeast Asia.

Seeking to offer a unique and dynamic live-work-play experience, lyf Funan Singapore was designed with community in mind — from the collaborative spaces, social programs to the strategic location at the heart of the city’s Civic and Cultural District.

Mindy Teo, Ascott’s deputy managing director for lyf, told reporters that lyf aims to address the younger generations’ need for open, collaborative spaces where they can interact, learn about new cultures, and become part of a community of like-minded people.

“The booming millennial segment, which is the fastest-growing travel demographic, already forms a quarter of Ascott’s customer base and is expected to grow. Our lyf properties are specially designed to cater to millennials’ craving for social connections, collaboration and co-creation” she said.

“It’s about creating a space where people feel like they belong, where they’re part of a bigger community. A social hub that offers a new way to belong, we see lyf playing a key role in bringing people together to discover new possibilities, spark creative ideas and contribute to the region’s innovation landscape.”

Lyf Funan Singapore spans about 121,000 square feet in gross floor area, with 412 rooms across 279 apartments. Catering to both short and long-term tenants, the nine-storey property will have easy access, via a sheltered underground walkway, to the City Hall Mass Rapid Transit.

It is also part of CapitaLand’s Funan integrated development in the district, which comprises of two office blocks and a mall offering innovative and experiential retail concepts, co-working spaces, urban farm, theatre, cinema, artisan shops, craft workshops, gymnasium, rock climbing, and futsal facility.

The development of the co-living property started in 2017, when Ascott, through its serviced residence global fund with Qatar Investment Authority, acquired the land from CapitaLand’s Mall Trust for S$90.5 million.

The fund has invested an estimated S$103 million to develop lyf Funan Singapore. Set up through a fifty-fifty joint venture with QIA in July 2015, Ascott’s private equity fund has committed total equity of US$600 million. The fund’s five other properties are La Clef Champs-élysées Paris, Citadines Islington London, Somerset Shinagawa Tokyo, Quest NewQuay Docklands Melbourne and Ascott Sudirman Jakarta.

A NEW WAY TO BELONG
The lyf brand, Ms. Teo said, was in part Ascott’s answer to the growing sharing economy around the world. In light of rising housing prices, as well as a preference for unique experiences instead of material things, millennials are much more open towards renting and sharing spaces than their predecessors.

“I think attitudes among the younger millennials are changing, not just in Singapore, but other countries in Asia as well” she said. “I mean, traditionally, Asia is always about home ownership. But I think people are shifting away from that mindset.”

For such guests, lyf Funan Singapore offers Instagrammable “Connect” social zones such as co-working spaces and an arena for activities such as hackathons, innovation talks, music jamming sessions, cooking sessions, or workshops with artisans.

Its “Bond” social kitchen is a collaborative space where people can prepare home-cooked meals together, take cooking classes and socialize while learning more about global cuisines from other residents. There are also places to work out and have fun with quirky design and interactive elements such as a giant ball pit, a giant-sized Connect Four set and the “Burn” social gymnasium with a human-sized hamster wheel.

Even the “Wash & Hang” laundromat is set to be a conversation starter, with the area placed right at the front of the property with a vending machine that dispenses beer.

This emphasis on facilitating community bonding and enhancing personal and professional growth is at the core of lyf Funan Singapore. Weekly social programs are held to build connections and inspire the exchange of new ideas, providing guests with the opportunity to co-organise and co-create community programs or take part in TED talks, craft workshops and hackathons, while a staff of ‘lyf Guards’ — who are also community managers, city and food guides, barkeepers, and event organizers — are there to provide help to guests who need it.

A mobile app for lyf Funan Singapore is available on the Apple App Store and the Google Play Store for easy booking, payment and seamless access throughout the property with just a tap or swipe. The lyf app can also enable communication with the lyf Guards, as well as provide guests with discounts at various shops at Funan by showing their mobile key.

The lyf Funan Singapore offers five interchangeable apartment types ranging from 18 sq.m. to 105 sq.m. to accommodate single, dual or group bookings, with room rates beginning at S$150. They include “One of a Kin” (18 sq.m.), a studio unit with an en suite bathroom for individuals and couples who enjoy their own space; “Two of a Kin” (43 sq.m.), featuring two private rooms with a shared kitchenette; “lyf Styl” (18 sq.m.), a gaming-themed studio unit equipped with a PlayStation console, en suite bathroom and a pull-down sofa bed, and also the “Up & Dow” apartments (18 sq.m.) which come with bunk beds.

The “All Together” apartments (41 sq.m. to 105 sq.m.), which are ideal for groups of up to nine, are business suites featuring two to six rooms with a shared kitchen, a Samsung Flip interactive smart screen to facilitate discussions, as well as a large table that doubles up as a workspace and dining area.

In late 2017, Ascott signed a serviced residence management agreement with local developer Cebu Landmasters Inc. to bring lyf to Cebu City with a 153-room serviced residence.

“Co-living is going to be a growing phenomenon. It’s here to stay” Ms. Teo said.

“I think there’s a lot of untapped demand in that market. For us, when we look at our plans in Asia, we see a lot of opportunity in cities like Manila or Jakarta, where there’s a rising class of millennials who have spending power. And they’re not looking for cookie-cutter hotels or service apartments. They want something more unique.”

MORE allots P1.7 billion for Iloilo power system

MORE Electric and Power Corp. has countered the projected capital outlay of Panay Electric Co., Inc. (PECO) with a bigger budget at a shorter period of P1.7 billion to upgrade the power distribution system of Iloilo City.

Roel Z. Castro, president of MORE, said in a statement on Monday that the P1.1-billion capital expenditure of PECO for the next 10 years is “more or less” the amount it owed to the city’s electricity consumers.

“So tama lang (So it’s just right that) they will pump it in because utang nila ’yan sa (they owe that to) consumers. In fact, they have to spend that in 10 weeks, not 10 years,” he added.

Mr. Castro, who described PECO as “franchise-denied,” said consumers had been paying the amount for years, but the utility did not invest what was collected in the past.

His statement is the latest in the exchange of words through media between MORE, the new utility franchise owner in Iloilo City, and PECO, the area’s distribution utility for 95 years whose franchise had expired.

Last week, Marcelo U. Cacho, PECO head of public engagement and government affairs, told reporters that the company was allocating about P1.1 billion in the next 10 years to upgrade and expand its existing facilities, including the construction of new substations and the replacement of its meters with “smart” ones.

Mr. Cacho, a fifth-generation member in the family business, said the company has also launched its smart metering project, which allows prepaid metering, real-time wireless meter reading, automatic disconnection and reconnection.

Early this year, MORE was granted a franchise to establish, operate, and maintain, for commercial purposes and in the public interest, an electricity distribution system in Iloilo City through Republic Act No. 11212.

It sought to expropriate what it called PECO’s “ageing” distribution network with the issuance of the franchise, which authorized MORE to take over the facility and property it needs to ensure Iloilo City and nearby towns have continuous supply of electricity.

However, PECO said a ruling by the Supreme Court blocked the expropriation of the distribution utility’s assets by MORE. It also pointed to a judgment by the Mandaluyong Regional Trial Court declaring Sections 10 and 17 of RA 11212 as void and unconstitutional for infringing on PECO’s rights to due process and equal protection of the law.

Mr. Castro said PECO’s investment announcement last week was merely a public relations stunt in a desperate bid to undo Congress’ decision to grant the electricity distribution franchise to another company.

“If PECO spent that amount 10 years ago, the Iloilo City Council would not have passed a resolution asking Congress to find a new distribution utility to manage the city’s electricity distribution system and the Senate and the House of Representatives would have renewed its franchise that expired this year. Instead Congress granted the franchise to MORE and President Rodrigo Duterte signed it into law,” he said. — Victor V. Saulon

Four directorial debuts in Cinema One film fest’s lineup

“ORIGINALITY in all its permutations” is the enduring battle cry of the now 15-year-old Cinema One Originals Film Festival as it continues to present films that challenge audiences to experience something “that goes beyond cinema, beyond cinephilia, beyond entertainment.” And with that mantra, the festival is presenting eight films from various genres from horror to the tried-and-tested romantic comedy.

The festival will run from Nov. 7 to 17 in select Ayala Malls cinemas (TriNoma, Glorietta, Manila Bay), PowerPlant Cinemas, and Gateway Cinemas.

The festival’s theme this year is “Kaya Mo Ba?” (Can you handle it?) with each of the eight competition films given a P3 million production grant.

“We tried to cover all film genres. When you watch the films, you will be enlightened and lightened will the themes of the entries. It’s not all dark,” Ronald Arguelles, festival director and channel head of Cinema One, said during a press conference on Oct. 22 at the Dolphy Theater, Quezon City.

Four of the films are the debut features of their respective directors like J.E. Tiglao’s Metamorphosis, a coming-of-age drama about intersexuality “that’s as wistful as it is provocative,” said a press release. The film stars Gold Aceron, Iana Bernardez, Ivan Padilla, Ricky Davao, and Yayo Aguila.

Another full-length feature debut is Eve Baswel’s Tia Madre, a gothic horror film about a young girl who starts to suspect her mother has been changed into something not quite human; as is Dustin Celestino’s Utopia, a riff on the noir genre which brings together a freelance videographer, a rookie police officer, an undercover PDEA agent, and a crime in progress while a comet flies over Manila. Tia Madre stars Cherie Gil and Jana Agoncillo while Utopia stars Enzo Pineda, Joem Bascon, and Aaron Villaflor.

Nigel Santos is also presenting his debut entry, Yours Truly, Shirley, a film about a widow who believes a young pop star is the reincarnation of her late husband. The film stars Regine Velasquez and Rayt Carreon.

Among the other four competition films are Lucid by Victor Villanueva, which is about a lucid dreamer who meets a mysterious person she can’t control in her dreams, starring Alessandra de Rossi and JM de Guzman; and O by Kevin Dayrit, a black comedy about vampires and drug-dealing which stars Anna Luna, Jasmine Curtis-Smith and Lauren Young.

“O is an exercise in giving the most clichéd concepts and genres a new flavor. It’s the same old hotdog, just dipped in peanut butter. It tastes offensive but funny at the same time,” Mr. Dayrit said of his film in the release.

In Sila Sila, Giancarlo Abrahan explores an LGBT story about “ghosting” or the practice of leaving a person hanging once the other party wants to stop the relationship. The film stars Topper Fabregas and Gio Gahol.

Denise O’Hara’s Tayo Muna Habang Hindi Pa Tayo might be a romantic-comedy at first glance — it stars JC Santos and Jane Oineza — but is a film about the “underside of trauma that even the truest of loves have,” according to a press release.

Aside from the competition films, Cinema One Originals opens with The Witch by Robert Eggers, a period horror film that is said to be as much about religious hysteria as it is about the rational world being encroached by the irrational. It opens on Nov. 7, 7 p.m., at the Ayala Malls Manila Bay Cinema 7.

The festival closes with Mikhail Red’s noir film, Dead Kids, which follows a group of entitled teenage misfits who visit their own skewed version of justice on the school jock who also happens to be the child of a drug lord and whom they decide to kidnap for ransom. The film will be screened on Nov. 17, 9:50 p.m., at Gateway Cinema 5.

Also included in this year’s festival programming are restored classics from ABS-CBN Film Restoration and FPJ Studios: Aguila (1980) by Eddie Romero, Bulaklak sa City Jail (1984) by Mario O’Hara, Misteryo sa Tuwa (1984) by Abbo dela Cruz, Bad Bananas sa Puting Tabing (1983) by Peque Gallaga, Tisoy (1977) by Ishmael Bernal, and Carlitos Siguion-Reyna’s Hihintayin Kita sa Langit (1991) and Saan Ka Man Naroroon (1993).

For the complete screening schedule, visit the Cinema One Originals Facebook page. — Zsarlene B. Chua

PHirst Homes to launch 3 more projects next year

By Vincent Mariel P. Galang
Reporter

PHIRST Park Homes, Inc. is targeting to launch as many as three projects, mostly in northern Luzon, next year.

“Next year, we’re launching at least two, or possibly three, and (it’s also) balanced din s’ya, north and south, but I think we will be more going towards north this time,” PHirst Park Homes President and Chief Executive Officer Ricky M. Celis told reporters after the launch of its fourth affordable housing project in Pandi, Bulacan on Oct. 19.

“Hopefully after Pandi, there is something in Pampanga,” he said, adding they are also looking at Quezon province for another project.

The newly launched PHirst Park Pandi covers 11 hectares out of the planned 18 hectares, with an initial inventory of P1.6-billion worth of units out of the estimated P2.9 billion in sales revenues.

This is the affordable housing brand’s fourth project after Tanza in Cavite, Lipa in Batangas, and San Pablo in Laguna, bringing its total foot print to 75.2 hectares and 7,908 units worth P13.3 billion.

Located near the Pandi Municipal Hall and Immaculate Conception Parish, PHirst Park Pandi offers a two-storey homes — Unna, a single-detached unit and Calista, a townhouse type of unit. Floor areas range from 40 square meters (sq.m.) to 54 sq.m., with prices ranging from P1.3 million to about P3 million, mainly targeting middle income families.

This year, the affordable housing unit of Century Properties Group, Inc. (CPG) is set to launch another project in Barangay Palo Alto in Calamba, Laguna next month.

Mr. Celis also said that the company’s projects in the south, specifically in Lipa and in San Pablo, are already up for expansion.

“Baka mag-expand tayo (We might expand) faster than expected. May tinitignan na kaming (We are already looking for its) expansion niya because the way things are going, it’s going to be sold faster than we expected. Same with Lipa. We’re actually now in the prices of acquiring an expansion,” he said.

PHirst Park San Pablo covers 18 hectares, while PHirst Park Lipa covers 19 hectares.

Mr. Celis said that the company is also eyeing to expand to Visayas and Mindanao, but only after it establishes itself in Luzon.

“Visayas is in the pipeline, but we’re looking at starting 2021 or 2022, so magpapagaling tayo dito sa malapit sa atin, ‘pag medyo okay na tayo (we will develop first in areas near us, then if we are already okay), then we will venture into Visayas and Mindanao,” he said.

PHirst Park Homes is a joint venture between CPG and Mitsubishi Corp.

The four projects are part of the 15 master planned communities with P57 billion in total sales, which will be continuously rolled out in the next four years to help address the housing backlog in the Philippines currently at 6.6 million.

Cebu Landmasters to issue P2-B corporate notes

CEBU Landmasters, Inc. (CLI) is issuing corporate notes to raise P2 billion to fund its capital expenditures and general corporate expenses.

The listed property developer said in a stock exchange disclosure yesterday it has signed a notes facility agreement with ALFM Peso Bond Fund, Inc. and ALFM Money Market Fund, Inc. for the 18-month debt security. The notes will have an initial fixed rate of 4.75%.

The proceeds will finance the company’s expansion plans, particularly land acquisition.

“CLI has several strategic land acquisitions lined up in greater Cebu, Bacolod, and Davao, with new expansion areas such as Iloilo, Butuan, and General Santos City also on the horizon,” it said.

CLI tapped BPI Capital Corp. to arrange the bond issuance.

The company in April said it is allocating P13 billion in capital expenditures this year, as it launches 29 new projects that can generate sales of about P25 billion. This means an additional 7,517 residential condominium units, 1,223 hotel rooms, and 161,034 square meters of gross leasable area under its portfolio.

The Cebu-based developer is aiming to reach a consolidated net income of P2.6 billion and parent net income of P2 billion by the end of 2019.

In the first semester of the year, CLI booked an attributable net income of P854.34 million, an increase of 13% from a year ago, driven by a 34% jump in revenues to P3.5 billion. — Denise A. Valdez

All reality shows all the time

THERE’S A new streaming service on the block and this time it’s focused on making sure people get their daily dose of reality drama — from Keeping Up With the Kardashians to Vanderpump Rules — from NBCUniversal and it’s called Hayu.

Pronounced like “hey, you,” the streaming service prides itself as a service that’s dedicated to reality content, a segment of the market that is “not met by other [streaming] services,” Hendrik McDermott, SVP brand on-demand and managing director of Hayu in an e-mail interview with BusinessWorld on Oct. 28.

The service, which launched in 2016, is currently available in 14 markets including the UK, Australia, Denmark, Belgium, and now the Philippines, Singapore, and Hong Kong.

“As in the other countries where we have launched, there’s a gap in the market for an OTT* Unscripted service for young females and Hayu super-serves this audience with content they love,” Mr. McDermott said.

“While we don’t share subscriber numbers, we are extremely pleased with the momentum we’ve achieved for Hayu since the launch — three and half years ago — as evidenced by our steady expansion,” he added.

Offering “over 7,000 episodes of top reality content” with “750 episodes added to the service each year and complete box sets allow fans to catch up on almost every series from the very beginning,” Hayu features series such as Keeping Up With the Kardashians, Vanderpump Rules, The Real Housewives, and Dance Moms. There’s also a selection for fans of true crime and home design shows.

The majority of the US shows on the service will debut the same day as their US launch. The service also allows subscribers to download episodes to view at their leisure.

Three years after its launch, the service has decided to expand into Southeast Asia since it “has all the right ingredients to break through Southeast Asia.”

“Specifically, we know from our local research that the Philippines has a huge appetite for high-quality reality content, which NBCU International has in abundance,” Mr. McDermott said.

The service is offered at P149 a month and is available for download in Google Play and the iTunes App Store and on web browsers.

* “Over-The-Top” refers to streaming content over the web. — Zsarlene B. Chua

BDO income rises in 3rd quarter

BDO UNIBANK, Inc. (BDO) saw its net income surge in the third quarter of the year due to higher recurring core revenues.

The Sy-led lender saw its net earnings jump by 43.35% to P11.967 billion in the July-September period from P8.348 billion a year ago, its quarterly report released yesterday showed.

This brought its nine-month income to P32.1 billion, up 49.3% from the P21.5 billion reported in the same period in 2018.

The bank said in a separate statement that the increase in its net earnings was mainly driven by the expansion in its recurring core revenues, translating to a 12.5% return on common equity.

With “improved” net interest margins, the lender’s net interest income grew 23.54% to P31.54 billion in the third quarter from P25.53 billion in the same period last year, taking it to P88.5 billion at end-September.

Its customer loans went up six percent to P2.1 trillion as of end-September, which the bank said was on the back of a sustained increase in credit to both the middle-market and consumer segments. Its gross nonperforming loan ratio (NPL) was maintained at 1.2%, while the NPL cover was at 168.2%

Meanwhile, the bank’s deposits went up by three percent year-on-year to P2.4 trillion during the first nine months. Low-cost current account savings account deposits accounted for 72% of this total, growing by six percent year-on-year.

Its total income from other operations likewise grew to P14.61 billion in the third quarter, up by 12.85% from the P12.95 billion from a year ago, bringing the nine-month total to P44.1 billion.

Broken down, earnings from service charges, fees and commissions grew 12.95% to P7.85 billion in the third quarter from P6.77 billion last year, trust fees went up around 10% to P905 million from last year’s P823 million, insurance premiums jumped 26.13% to P3.91 billion from P3.1 billion, and miscellaneous income inched up by 1.61% to P1.26 billion from the year-ago figure of P1.24 billion.

Meanwhile, trading and foreign exchange gains in the third quarter declined to P690 million from the P1 billion recorded a year ago, taking the nine-month total to P4.3 billion, a “normalized level compared to 2018 when a more volatile environment prevailed,” BDO said.

EXPENSES GROW
The bank’s total operating expenses grew 17.65% to P29.33 billion last quarter from P24.93 billion a year ago. In the nine months ended September, BDO’s operating expenses also climbed 20% to P85.8 billion, mainly from business expansions and volume-related expenses such as taxes and licenses and policy reserves in its life insurance subsidiary, BDO Life Assurance Company, Inc. which grew 42%, the bank said.

“Excluding volume-related expenses, operating expenses should have risen by 14%,” it added.

The lender has set aside provisions worth P4.2 billion as the it “maintained its conservative credit and provisioning policies.”

Meanwhile, the bank’s capital base grew to P364 billion, with its common equity Tier 1 ratio at 13.1% and capital adequacy ratio at 14.6%.

“With its focused growth strategy, strong business franchise, solid balance sheet and extensive geographic reach, the bank remains solidly positioned to capitalize on the country’s solid economic pace and growth opportunities in underserved and emerging markets,” the bank said.

Currently, BDO has over 1,300 operating branches and more than 4,400 automated teller machines across the country.

As of June 30, the bank said it was the largest bank in the country in terms of total assets, loans,deposits and trust funds under management.

BDO shares closed at P152 apiece on Monday, up P4.20 or by 2.84%. — Beatrice M. Laforga

Damosa Land says third IT Park building set to open in 2020

DAVAO CITY — Damosa Land, Inc. (DLI) is on track with the completion of its 15-storey Diamond Tower, the third building within its Damosa IT Park, by early 2020, an official of the Floirendo-owned company said.

“We only started this in December of last year and to date we have about seven floors already and we are looking to top off the building by end of the year, hopefully,” DLI First Vice-President Ricardo F. Lagdameo said in an interview last week.

Mr. Lagdameo said demand for office space in Davao City remains robust with the influx of new businesses as well as the expansion of existing firms.

Among the current locators at the Damosa IT Park, a Philippine Economic Zone Authority-accredited facility, are business process outsourcing firm Concentrix, various information technology companies, and global office space provider Regus.

In July, he said several knowledge process outsourcing companies have signed up for space at the Diamond Tower, which will have a total floor area of 20,000 square meters.

Mr. Lagdameo said they are also positioning the new building to become another Davao City landmark, with its architectural design inspired by banana and abaca leaves.

DLI is the real estate arm of Anflo Management and Investment Corp., whose flagship is Tagum Agricultural Development Company, Inc., one of the biggest fresh banana exporters in the country. — Maya M. Padillo

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