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MGB recommends lifting suspension of 2 mines

By Vincent Mariel P. Galang, Reporter

THE suspension of mining operations of two companies may soon be lifted, according to an official of the Department of Environment and Natural Resources (DENR).

’Yung sa [For] Zambales [Diversified Metals Corp. (ZDMC)] and Strong Built [Mining Development Corp. (SBMDC)], in particular, it’s already endorsed for lifting. ’Yung iba [For the others] we still have to evaluate whether they have complied with the corrective measures,” Analiza R. Teh, Environment undersecretary for climate change and mining concerns, told reporters on the sidelines of the Mining Philippines 2019 International Conference and Exhibition in Pasay City on Tuesday.

Ms. Teh said the regional offices of the Mines and Geosciences Bureau (MGB) recommended the lifting of the suspension for the two mines.

ZDMC, whose mine is located in Sta. Cruz, is one of the mining units of Consunji-led DMCI Holdings, Inc. SBMDC is a Cebu-based mining company, whose site is located in MacArthur, Leyte.

As part of the mining audit last year, ZDMC and SBMDC were among the nine companies whose operations were suspended, while three other mining firms were ordered closed.

Ms. Teh said that as of August 2019, Claver Mineral Development Corp., Oriental Synergy Mining Corp., and Libjo Mining Corp., have filed appeals with the Office of the President. The mineral production sharing agreements of Claver and Oriental were canceled, while Libjo was suspended.

Berong Nickel Corp., Carrascal Nickel Corp. and Emir Mineral Resources Corp. have already had their suspension orders lifted.

However, Ore Asia Mining and Development Corp., Krominco, Inc., Mt. Sinai Exploration and Development Corp., Wellex Mining Corp., and AAMPHIL Natural Resources Exploration and Development Corp., are still complying with the DENR order.

Meanwhile, Ms. Teh noted that Indonesia’s possible ban on nickel ore exports will be an opportunity for the Philippines.

Isang [That is an] opportunity iyon if Indonesia will ban their exports. That would be an opportunity for the Philippines to be the prime source,” she said.

On Sept. 2, Indonesia announced that it will bring forward its nickel ore export ban to Jan. 1, 2020 from 2022.

Data from the MGB showed that nickel ore production grew 3% to 11.306 million dry metric tons (DMT) in the first half of 2019. Major producers were Rio Tuba Nickel Mining Corp. and Taganito Mining Corp., which produced 2.608 million DMT and 2.346 million DMT, respectively.

Ms. Teh said the real issue is how to ensure mining companies comply with environmental and safety standards.

“We need to develop public confidence in them. Talagang kaya ba natin ang [Can we really do] responsible mining? We are more focused on that. We would like to strengthen our monitoring and enforcement capabilities, so that we can really make sure that the mining companies will be able to comply with the provisions regarding the environmental requirements,” she said.

Viet Thanh Nguyen and understanding of two worlds

IT WAS between two or three in the afternoon in a hotel room in Cambridge, Massachusetts where Vietnamese American writer and professor Viet Thanh Nguyen was preparing for a book reading session at a local bookstore later that day. Everything was calm until a series of notification alerts filled the air.

“As I was writing e-mails, there were all these [gadget] beeps. I looked at my Twitter and Facebook feeds, and people were saying that I won the Pulitzer Prize,” Mr. Nguyen said, adding that he immediately called his publicist to confirm the announcement.

That day Mr. Nguyen had been awarded the 2016 Pulitzer Prize for Fiction for his debut novel, The Sympathizer (2015).

Word must have spread quickly in Cambridge — Mr. Nguyen went to the local bookstore later that afternoon where he found more people than he expected lined up to listen to him and have their books signed.

Three years later, Mr. Nguyen found himself at the Raffles Makati as one of the guest authors invited to for writing and literature discussions and book signings at the 6th Philippine Readers Writers Festival (PRWF) on Aug. 2-4.

At the hotel’s conference room reserved for media interviews on Aug. 3, the award-winning writer arrived holding a clear folder with his printed schedule. He referred to the list and told this writer that it is his 14th interview since he arrived in Manila two days earlier.

It took a year for the reality of winning the Pulitzer Prize to sink in. Mr. Nguyen admitted that being a Pulitzer Prize winner is “very stressful.”

“I will carry this title for the rest of my life, so I better do something with it,” he said, referring to talking about pressing issues such as migration and refugee crisis. “For them (the readers of The Sympathizer), it was not just for me [but also] for all Vietnamese people and Asian-Americans. So I thought that was a tremendous obligation, to use the Pulitzer Prize for good.”

The Sympathizer tells the story of the Vietnam War narrated by a French-Vietnamese communist double agent and army captain who arrives in America after the fall of Saigon. While building a fresh start as a refugee in Los Angeles, he secretly reports back to his communist superiors in Vietnam.

Mr. Nguyen noted that giving a voice to a minority and an understanding of the Vietnamese point of view of the war and its effect on its people is was what led him to write the book.

“I think that being a refugee in the United States has defined my life. It’s the reason I came to the United States, and it’s an experience and identity that unifies me with other refugees,” he said.

The writer was just four when his family fled to the United States from southern Vietnam after Saigon fell in 1975 and the Americans fled the war-wracked country.

In an article published in the New York Times on April 2015 titled “Our Vietnam War Never Ended,” he wrote: “I was taken from my parents and put into a household of American strangers who were supposed to care for me while my parents got on their feet. I remember a small apartment, or maybe a mobile home, and a young couple who did not know what to do with me.”

Mr. Nguyen said, “Refugees now are a category of people that are oftentimes quite stigmatized. So it’s important for someone like me, who has been a refugee and still thinks of himself as a refugee, to write about these experiences and to form around them.”

THE MINORITY’S POINT OF VIEW
Immigrants and refugees, despite their similarity as populations that move from one country to another, are terms that should not be used interchangeably,” he told BusinessWorld.

“Immigrants choose to go. They choose when and where to go, while refugees don’t choose to go. They’re forced to go for a number of reasons. And they oftentimes don’t have much of a choice where they end up,” Mr. Nguyen said.

According to statistics from the UN Refugee Agency (UNHCR), there were 70.8 million people who “were forcibly displaced worldwide as a result of persecution, conflict, violence or human rights violations” by the end of 2018. That was an increase of 2.3 million from the previous year.

Historically, refugees have fled because of war. “Refugee experiences have been fundamental to the 20th century and now in the 21st. Wars produce refugees,” Mr. Nguyen said.

Another dilemma they face is that they are expected to be grateful. “In the United States, Americans welcome immigrants and refugees and expect them to be grateful to be allowed into the country… and not to talk about the history that produced them.”

In 2017, Mr. Nguyen published his second piece of fiction titled The Refugees, a collection of short stories set in Vietnam and America. It is a way of giving a voice to the Vietnamese and Asian-American experience.

“Literature is a very individualistic pursuit. Books are oftentimes about individuals. So that can lead to writers thinking that the work of literature is purely about and by individuals. And that’s only half true. Because literature is also produced out of social context,” he said.

For The Refugees, Mr. Nguyen chose to tell diverse stories based on experiences of people of different gender, ages, and ethnicity.

“It’s a very human reaction to not think about that kind of issue. That is partly what arts and literature is supposed to do: tell the human stories,” Mr. Nguyen said.

“I believe that writers, whether they’re minorities or not, have the obligation to transform the world, not just through their literature, but also through their actions, and helping other writers,” he said.

The Sympathizer and The Refugees are available at National Bookstore for P769. — Michelle Anne P. Soliman

BDO, Keppel Land bullish on PHL property market as The Podium opens

By Zsarlene B. Chua, Reporter

BDO Unibank, Inc. and Singapore’s Keppel Land Ltd., on Tuesday formally opened the office and retail mixed-use development The Podium in Ortigas business district, Mandaluyong City.

The Podium spans 140,000 square meters (sq.m.) in leasable area — 50,000 sq.m. of retail space and about 90,000 sq.m. of office space. The Podium mall first opened in 2002, while the second phase of the mall began operations in 2017. The 48-storey Podium West Tower was completed in May this year.

The mall serves as a podium for both the East Tower and the BDO Corporate Center Ortigas that opened in 2015.

Keppel Land, the property arm of Keppel Corp., holds a 40% stake in the development, while BDO and an associate company own the remaining stake. BDO is the banking unit of the SM Group.

The Podium’s grand opening was attended by Singaporean President Halimah Yacob who is currently on a five-day state visit.

“I would say that this is probably the biggest [investment in the Philippines] that we have but hopefully we can do more,” Tan Swee Yiow, chief executive officer of Keppel Land, told reporters on the sidelines of The Podium’s opening on Tuesday.

When asked why it took 17 years for the development to be completed, Mr. Tan said it was due to market conditions.

“We were talking about having this project 20 years ago, we were probably ahead of the market and we may not be able to find a good demand. So I think we timed the entry in such a way that the economy developed [to a] stage that is able to take such demands,” Mr. Tan explained.

The Podium was developed to make it look like a mixed-use development in Singapore because the developers wanted to “create a piece of Singapore here in the Philippines,” Teresita Sy-Coson, chairperson of BDO, said in her opening speech.

“This development is significant because it is here where we hope to connect the Singapore and Philippine companies, whether it’s through retail collaborations in the mall or looking for local-owned or representative office spaces… We would like to make things easier for Singaporean companies,” she said, before adding that more Singaporean companies are expressing interest in entering the country.

The Podium has a 2,000-sq.m. garden wall that has over 6,500 plants — described as the biggest vertical green wall in the country. It was awarded the LEED Gold Mark (Core & Shell) pre-certification by the US Green Building Council and received the Green Mark Gold Award by the Building and Construction Authority of Singapore.

Aside from the Podium, Mr. Tan expressed interest in doing more mixed-use developments in the country.

“We are very strong in mixed-use developments and I find [that because] of the traffic conditions here, this is probably the one thing we can try to scale more. Of course we can also do a bit of residential and so on, but I think mixed-use is something we can experiment with a bit more,” he said.

He added that they plan on focusing on Metro Manila first before branching out elsewhere in the Philippines.

“[There’s no specific location] yet because to get a large-scale [plot of land] like this is not easy…we will continue to look for such opportunities,” he said.

In celebration of the 50th anniversary of diplomatic relations between Singapore and the Philippines, Enterprise Singapore (a statutory board under the Ministry of Trade and Industry supporting small and medium enterprises) is staging Singaporium, a lifestyle and food pop-up fair at the mall’s atrium until Sept. 15.

Veterans join original cast members in the restaging of Himala: Isang Musikal

NA-PARALYZE AKO (I was paralyzed).”

That was actress Sheila Francisco recalling her experience as an audience member watching Himala: Isang Musikal in 2018. “The truth of Himala was so real to me, that I could not stop sobbing,” she said.

“I think what Himala does is hit you in the face with what is real and what is happening. We are so desperate for answers. Then somebody just convinces us that this might be the way… ’Yun na kaagad ang pinanghahawakan natin. Nawala na yung questioning and looking for other possibilities (That’s what we hold on to right away. We miss out on questioning and looking for other possibilities),” she added.

This year, Ms. Francisco joins the cast as Nanay Saling, Elsa’s mother, in The Sandbox Collective’s collaboration with sister company 9 Works Theatrical’s restaging of Himala: Isang Musikal this month.

Based on the screenplay by Ricky Lee for the film directed by Ishmael Bernal which was released in 1982, Himala follows the story of a young woman named Elsa, who seems to develop miraculous healing powers after claiming to have seen the Virgin Mary, becoming in the process the savior of the people of the impoverished Barrio Cupang.

Directed by Ed Lacson, Jr. (who also designed the set), with music and lyrics by Vincent A. de Jesus, Himala: Isang Musikal won eight Philstage Gawad Buhay awards last March, including Outstanding Production of Existing Material for a Musical, Outstanding Stage Direction for a Musical (Ed Lacson, Jr.), and Female Lead Performance in a Musical (Aicelle Santos).

AN OLDIE BUT GOODIE
Director Ed Lacson, Jr. admitted that he was one of the last people to be convinced to do a rerun. He prefers to call this restaging “a rediscovery.”

Mr. Lacson noted that the idea of blind faith is what makes the story continue to resonate with audiences.

“I think that’s still happening now — believing that one entity will solve all of our problems, when in fact, there is no easy solution to the problems we are facing,” he said at a press conference at the Privato Hotel in Quezon City on Aug. 27.

Screenplay writer Ricky Lee never expected the material to still be relevant today. “When I was writing it [for the film], I was not thinking about that. But it is reassuring and reaffirming to see that it has survived different governments and various generations,” Mr. Lee told BusinessWorld after the press conference.

“And at the same time, how sad, that the same problems are still here, and so we keep responding to the same problems up to now,” he added.

According to Mr. Lee, the story is based on an apparition of the Virgin Mary in Lubang, Occidental Mindoro in 1967, reported by a young lady named Belinda Villas. “She is still alive and she believes it up to now,” Mr. Lee told BusinessWorld.

OLD AND NEW CAST MEMBERS
Fresh from her West End debut as Gigi in Miss Saigon, Aicelle Santos reprises her role as Elsa. Philstage Gawad Buhay nominees, Kakki Teodoro and Neomi Gonzales both return to their roles of Nimia (a prostitute who is Elsa’s childhood friend) and Chayong (Elsa’s friend), respectively. David Ezra reprises his role as the troubled filmmaker, Orly, who documents the tale. Gawad Buhay and Aliw Award nominee Floyd Tena also reprises his role as the priest. Soprano and Ryan Cayabyab Singers (RCS) member Celine Fabie joins the cast and takes on the role of Elsa, alternating with Ms. Santos.

Returning to Barrio Cupang is actress and singer May Bayot-De Castro (who played Elsa in the 2003 original non-musical stage adaptation by Tanghalang Pilipino) in the role of Nanay Saling, Elsa’s adoptive mother, alternating with Sheila Francisco. Vic Robinson joins the cast in the role of Pilo, a suitor, alternating with Sandino Martin.

Joining the ensemble are Jon Abella (Eto Na! Musikal nAPO!), Pamela Imperial (Dani Girl), Red Nuestro (Ang Huling El Bimbo, All Out of Love), and Sean Inocencio (Miong).

Mr. Lee said that it is “exhilarating” for him as a writer to have witnessed the story undergo various adaptations. “Habang pinapanood ko (While I watch it) through its various permutations onstage, the characters stay the same. And at the same time, they are different every time,” Mr. Lee said about the approaches to the portrayal of his characters.

Himala: Isang Musikal runs on Sept. 20 to Oct. 20 at the Power MAC Center Spotlight in Circuit Makati. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999) and at The Sandbox Collective (0956-200-4909, 0917-554-5560, and 586-7105). — Michelle Anne P. Soliman

Axelum warns revenues may dip this year

AXELUM Resources Corp. expects sales volume of coconut water to increase this year, although overall revenues may slump due to lower global prices for coconut oil.

“The volume is increasing. We sold about 25 million liters of coconut water in 2018. We’ll have about 27-28 million liters this year,” Axelum President and Chief Operating Officer Henry J. Raperoga told reporters on the sidelines of an investors’ briefing in Makati yesterday.

Coconut water accounts for about 20% to 30% of the company’s business.

The integrated coconut product manufacturer is banking on the rising market for coconut water to support its growth in the following years. Citing a study by the University of Asia and the Pacific (UA&P), Axelum said coconut water is expected to grow between 12-20% from 2019 to 2023, driven by new product developments.

Axelum supplies coconut water products to a number of global brands such as Vita Coco, Kirkland, and Fiesta.

The same UA&P study showed that desiccated coconut, which accounts for about 30-40% of Axelum’s sales, is forecast to grow by 8.6% during the same period, fueled by increasing health consciousness of consumers.

Despite the volume growth, Mr. Raperoga said they may see a slight dip in revenues in 2019, compared to P5.88 billion in sales last year.

“I think it will be a little bit lower than that because of the lower prices (for coconut oil), but the volume should grow,” Mr. Raperoga said.

“It’s because of the global market. The desiccated coconut is a traditional product, and the price of that is affected by the global oil prices, where coconut oil is actually benchmarked, so pag bumabagsak, nasasama siya (so when that declines, it is affected).”

The Axelum executive, however, noted that only desiccated coconut is affected by movements in the global market.

Axelum is also working on expanding its distribution network by entering new markets both locally and internationally.

“In the Philippines, we are only selling products in Metro Manila and parts of Luzon. We plan to expand to the Visayas and Mindanao by appointing distribution partners in key cities,” Mr. Raperoga said.

Overseas, Mr. Raperoga said they are planning to set up a distribution hub in Portland, similar to their facilities in Atlanta and Melbourne, to reach the West Coast, Canada, South America, and Europe.

The top executive also said there are opportunities to acquire companies that would expand Axelum’s footprint, noting that they have been approached by a firm in Vietnam and two in the Philippines for potential deals.

Axelum is in the process of conducting its initial public offering, where it will offer up to 1.13 billion shares to the public priced at up to P6.81 each. The company could raise a maximum of P7.695 billion from the offering, which it plans to use for further expansion.

The company will release the final offer price by Sept. 20, with the offer period to run from Sept. 24 to 30. Its shares will then be listed on the main board of the stock exchange by Oct. 7. — Arra B. Francia

Watch a CCP Gala show for P50, P100

WHAT can P100 or P50 get you? How about tickets to Balcony 1 or Balcony II for the People’s Gala, Bulawan: CCP 50th Anniversary Concert, on Sept. 21, 8 p.m., at the Cultural Center of the Philippines’ Tanghalang Nicanor Abelardo?

As a way of giving back to the Filipino people who have supported the Cultural Center of the Philippines (CCP) through the past 50 years, Balcony 1 and Balcony II tickets of the People’s Gala have been made affordable.

Performing at the gala are theater actress Joanna Ampil; pianist Raul Sunico; Ballet Philippine alumnus Candice Adea along with her fellow dancer from West Australian Ballet Julio Blanes; soprano Rachelle Gerodias; contemporary artists Poppert Bernadas, Gian Magdangal, and Lara Maigue; and veteran actors Celeste Legaspi, Nonie Buencamino, Shamaine Buencamino, Audie Gemora, Monique Wilson.

With composer-director Jerrold Tarrog and editor Chuck Gutierrez, there will be a Cinemalaya segment paying homage to the golden years of Philippine cinema.

Directed by Loy Arcenas, the People’s Gala features artists who have been part of the CCP over the last 50 years, including its resident companies: Ballet Philippines, the Philippine Ballet Theater, the Philippine Philharmonic Orchestra, Tanghalang Pilipino, the Bayanihan Philippine National Folk Dance Company, the Ramon Obusan Folkloric Group, the UST Symphony Orchestra, NAMCYA, and the Philippine Madrigal Singers.

The Bulawan concert kicks off the year-long celebration for the CCP’s golden anniversary. There will be special activities and other events from September 2019 to September 2020 offered at affordable prices or even for free.

For tickets, call the CCP Box Office at 832-3704. For other details visit www.culturalcenter.gov.ph, or follow the CCP official Facebook and Instagram accounts.

Petron may sell back Limay plant to SMC Global Power unit

PETRON Corp. looks to sell back the 140-megawatt (MW) solid fuel-fired power plant in Bataan it acquired from a unit of SMC Global Power Holdings Corp. three years ago.

In a statement issued Tuesday, the listed oil company said it has signed a memorandum of understanding with SMC Powergen, Inc. for the sale of the plant in Limay, Bataan.

The power plant, which previously had a capacity of 70 MW, was originally owned by Petron until it was acquired by SMC Powergen in September 2013.

SMC Powergen doubled the plant’s capacity to 140 MW in 2014, before being acquired by Petron again in December 2016 for P20.03 billion, in a bid to lower its power and steam costs.

After Petron’s acquisition, the plant was used to supply the power requirements of the company’s Bataan refinery that produces 180,000 barrels per day. The facility was previously used for the SMC Powergen’s production of power and steam.

SMC Global Power will be conducting a preliminary review of the power plant and its operations over a six-month period to determine whether it is good for acquisition.

Petron and SMC Global Power are both part of diversified conglomerate San Miguel Corp., which also has core interests in beverage, food and packaging, and infrastructure.

Earlier this year, Petron President and Chief Executive Officer Ramon S. Ang said it will hold off expansion efforts due to fluctuating global crude oil prices. The company had committed to spend $1 billion to upgrade its refinery and expand its retail network over three years. Of this, about $600 would have been spent for its Limay, Bataan refinery.

Meanwhile, SMC Global Power wants to expand its renewable energy portfolio while developing clean coal power plants.

Petron’s net income attributable to the parent fell 75% to P2.23 billion in the first half of 2019, amid a six percent decline in gross revenues to P254.81 billion.

Shares in Petron dropped 0.39% or two centavos to close at P5.11 each at the stock exchange on Tuesday. — Arra B. Francia

Treasury makes partial award of 7-year bonds

THE GOVERNMENT made a partial award of reissued seven-year Treasury bonds (T-bonds) offered yesterday ahead of the US Federal Reserve’s policy meeting this month and developments in the US-China trade war.

The Bureau of the Treasury raised just P10.399 billion via the seven-year bonds yesterday out of the programmed P20-billion offering even as total bids reached P22.149 billion.

The debt papers fetched an average rate of 4.503%, lower than the 4.845% quoted during the July 16 auction. The bonds’ coupon is at 6.25%.

Had the government made a full award of the offer, the average rate would have ended at 4.569%.

The last time the Treasury made a partial award of government securities was on April 24 when it raised just P4.26 billion out of a planned P10-billion issuance of reissued 20-year T-bonds.

At the secondary market on Tuesday, the seven-year debt papers were quoted at 4.561%, according to the PHP Bloomberg Valuation Service Reference Rates.

Deputy Treasurer Erwin D. Sta Ana said the lower-than-expected tenders and higher rates seen yesterday reflect the market’s “wait and see” attitude ahead of the two-day rate-setting meeting of the Federal Open Market Committee (FOMC) next week.

“It’s basically a reflection of a wait and see attitude from the participants because you know, FOMC is around the corner, US Treasuries are increasing — overnight, you can see some increases in the 10-year [US Treasury], so that actually brought about the results. Less ‘yung tenders (The tenders were lower than usual) then the rates spiked up a bit,” Mr. Sta Ana told reporters after Tuesday’s auction.

A bond trader said the auction result was expected amid expected improvements in the trade relations between the United States and China.

“This was kinda expected due to recent sell-off in US Treasuries as risk sentiment temporarily improved given developments on trade talks or, say, lack of bad news,” the bond trader said in a phone message yesterday.

The US Federal Reserves policy-making FOMC will hold a rate-setting meeting on Sept. 17-18.

The Fed reduced interest rates by 25 basis points in July, its first rate cut since 2008.

Fed Chair Jerome Powell said Friday in Zurich that the US Federal Reserve will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy, sticking to a phrase that financial markets have read as signaling further interest-rate reductions ahead.

Mr. Powell said policy makers will be closely watching geopolitical risks, financial conditions, and other incoming economic data as they weigh what to do.

Meanwhile, US Treasury yields rose to three-week highs on Monday, in line with gains in the European bond market, as risk appetite improved amid easing US-China trade tensions and expectations of less-aggressive action from the European Central Bank this week.

In afternoon trading, US benchmark 10-year Treasury note yields rose to 1.63% from 1.55% late on Friday. Early in the session, 10-year yields hit a three-week high of 1.635%.

Since the beginning of the year, 10-year yields have fallen more than 100 basis points.

On the other hand, China and the United States last week agreed to hold high-level talks in early October in Washington, cheering investors hoping for a trade war thaw as new US tariffs on Chinese consumer goods chip away at global growth.

The government is set to borrow P230 billion from the domestic market this quarter through Treasury bills and T-bonds.

It is looking to raise P1.189 trillion this year from local and foreign sources to fund its budget deficit, which is expected to widen to as much as 3.2% of gross domestic product. — Beatrice M. Laforga with Reuters

Rizal’s tampipi on sale at León Gallery auction

AMONG the lots at León Gallery’s The Magnificent September Auction 2018 ares a pair of tampipi, or woven rattan cases, wherein the National Hero Jose Rizal inconspicuously carried his manuscript of the Filipino classic novel Noli Me Tangere. The two cases are prized family heirlooms, having survived the revolution along with WWI and II. Lots include the Murillo Velarde Map of 1734; a first edition volume of Sucesos de Las Islas Filipinas, The Events of the Philippine Islands by Antonio de Morga with annotations by Rizal; hard-bound first editions of Jose Rizal’s El Filibusterismo and Noli Me Tangere; ceremonial medallions worn by the KKK Supreme Council — Dr. Pio de Valenzuela, General Emilio Jacinto, and Andres Bonifacio — for their Masonic meetings. The auction, which features works of Philippine fine art, antiques, and furniture, will be on Sept. 14, 2 p.m., at Eurovilla 1, Legaspi Street corner Rufino Street, Legazpi Village, Makati City. The preview is ongoing until Sept. 13 at León Gallery.

GCash introduces new cash-in technology at Puregold

GLOBE Fintech Innovations, Inc. (Mynt) is introducing a new technology allowing GCash users to top-up their mobile wallets by scanning a barcode at Puregold Price Club, Inc.’s stores.

Ernest L. Cu, president and chief executive officer of Globe Telecom, Inc., said the partnership completes the “ultimate experience in a store” that GCash is promoting with its technology.

“This is the first company, Puregold, that has both (cashless payment and top-up) experiences integrated into one. That’s a milestone for GCash, especially when it’s a major retailer that has thousands of stores around the country,” Mr. Cu said at the program.

The technology allows GCash users to deposit cash into their mobile wallets by scanning the bar code at the payment counter. It will be deployed in 368 Puregold branches across the country.

GCash Chief Commercial Officer Frederic Levy told reporters on the sidelines of the launch that the company is also partnering with LBC Express Holdings, Inc. to allow “cash-in” in LBC branches.

“LBC will start to accept GCash tomorrow for cash-in. That’s 1,400 branches… We will test first the standard system,” he said yesterday. — Denise A. Valdez

Metrobank looking to raise P5B from bonds

METROPOLITAN Bank & Trust Co. (Metrobank) is looking to raise P5 billion via peso-denominated bonds to support its lending business and expand its funding sources.

In a stock exchange filing on Tuesday, the Ty-led lender said it will issue P5 billion worth bonds, with the option to upsize.

The bank said the issue will have a tenor of at least three-and-a-half years “to be priced using the applicable interpolated PHP BVAL (Bloomberg Valuation Service) Reference Rate benchmark.”

Metrobank said the final issue size, terms and the timetable will be based on market conditions.

The bonds to be issued are part of its P100-billion bond and commercial program.

“The proceeds of the issue are intended to be used to support the bank’s lending activities and diversify funding sources,” Metrobank said in an email yesterday.

“This also gives our clients an opportunity to invest in higher-yielding high quality assets. Bonds have been granted by the BSP (Bangko Sentral ng Pilipinas) a lower reserve requirement compared to deposits,” the bank said.

Metrobank has mandated ING Bank N.V.’s Manila Branch and Standard Chartered Bank as joint lead arrangers for this planned issuance.

The lender said it has raised some P56.75 billion via peso-dominated bonds since November 2018.

Metrobank raised P11.25 billion in fresh funds via two-year bonds in July, more than twice than the programmed P5-billion offering amid strong demand from investors. The notes carry a coupon rate of 5.5%. This was also part of its P100-billion bond program.

In April, Metrobank raised P17.5 billion via three-year bonds carrying a coupon rate of 6.3%. In November last year, the bank likewise raised P10 billion through two-year fixed-rate bonds with an interest rate of 7.15%. This issuance was reopened in December for another P18 billion offering.

Metrobank’s net income in the second quarter rose 15.5% to P6.48 billion from a year earlier, buoyed by sustained loan and margin growth as well as fee-based profit.

This brought the bank’s second-quarter earnings to P13 billion, 18% higher than a year earlier.

Shares in Metrobank declined 20 centavos or 0.29% to close at P69.95 apiece on Tuesday. — Beatrice M. Laforga

BDO to issue P5 billion in LTNCDs

BDO UNIBANK, Inc. is set to issue P5 billion worth of long-term negotiable certificates of deposit (LTNCD) to diversify its funding sources and fund its expansion plans.

In a statement released on Tuesday, the Sy-led bank said the notes have a term of five-and-a-half years and will be sold for a minimum investment of P100,000 with increments of P50,000 thereafter.

The LTNCDs have an indicative rate of 3.75%. The lender said it will set the final coupon rate at the end of the offer period which runs from Sept. 10 to Sept. 20. The interest will be paid quarterly.

The debt papers are set to be issued on Sept. 27.

The bank said it can change the offer period or increase the issue size based on market demand.

BDO’s latest offer of LTNCDs is “part of the bank’s efforts to diversify the maturity profile of its funding sources and support business expansion plans,” the lender said in the statement.

The transaction’s sole arranger will be ING Bank N.V.’s Manila branch, which will also act as a selling agent along with BDO and BDO Private Bank.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

In April, the Sy-led lender also issued 5.5-year LTNCDs worth P7.32 billion with an interest rate of 5.375%. Strong demand from investors allowed the bank to expand the issue volume from the original P5 billion.

In the same month last year, the bank also raised P8.2 billion via 5.5-year LTNCDs with a rate of 4.375% per annum.

BDO’s net income in second quarter jumped by 43.4% P10.393 billion, bringing its first semester bottom line to P20.140 billion, an 53.6% increase year on year.

It was the largest bank in the country in terms of total assets, deposits and trust funds as of June 30.

Shares in BDO went up 50 centavos or 0.35% to close at P143 apiece on Tuesday. — B.M. Laforga

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