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Watchdog ups M&A reporting trigger

By Janina C. Lim, Reporter
THE PHILIPPINE Competition Commission will raise next month the threshold values for required notification of mergers and acquisitions (M&As), according to a resolution posted on Thursday on the watchdog’s Web site.
PCC Advisory 2019-001 raises the thresholds to P5.6 billion from P5 billion for “size of persons” (SoP) and to P2.2 billion from P2 billion for the size of transactions (SoT).
The SoP is defined as the aggregate annual gross revenues or value of assets of “the ultimate parent entity of at least one of the acquiring or acquired entities” while SoT pertains to the value of assets or revenues of the acquired entity. When both are met, entities are mandated to notify the PCC of their transactions.
TO PREVENT CONFUSION
The adjustment was in accordance with last year’s PCC Memorandum Circular No. 18-001 which established a system of automatic annual adjustment of these thresholds based on the nominal gross domestic product (GDP) growth of the previous year rounded up to the nearest hundred millions. GDP grew by 6.2% last year, based on constant 2000 prices, and by 10.2% in nominal terms.
“The Commission deemed it more prudent to issue the resolution even though the memorandum circular mandates automatic adjustment of notification thresholds to prevent any confusion as to the determination of the adjusted thresholds based on the formula given under the memorandum circular,” the PCC’s Mergers and Acquisition Office said in a statement sent by mobile phone message.
PCC Chairman Arsenio M. Balisacan said recalibrating the threshold in line with the economy “ensures that the thresholds maintain their real value over time and relative to the size of the economy.”
“The PCC observes that the appetite for mergers and acquisitions within a rapidly growing economy remains high,” the anti-trust chief said in a statement yesterday.
“A well-designed threshold must be reflective of the country’s economic condition, such that the scope of merger control remains faithful to the intent of the law. The rationale for setting a notification threshold is to ensure that M&As that are more likely to substantially lessen competition are subject to compulsory notification and review, and to exclude those that are less likely to pose competition concerns,” Mr. Balisacan explained.
The adjustment marks the second such move since Republic Act No. 10667, or the Philippine Competition Act (PCA), was enacted in 2015 when thresholds started off at P1 billion for both SoP and SoT.
The first adjustment was made in March last year.
The law noted factors to consider when determining the need for an adjustment: structure of the relevant market, degree of integration, access to end-users, technology and financial resources, and other factors affecting the control of a market as provided by the law.
The new thresholds will apply to M&As with definitive agreements executed on or after March 1.
Under the law, the PCC is mandated to review mergers and acquisitions to ensure that these deals will not substantially prevent, restrict or lessen competition in the relevant market.
The country’s antitrust body has reviewed 177 transactions with a combined value of P2.83 trillion to date.
Of this, 161 or 91% have been approved.
Most of these transactions are from manufacturing, finance and insurance, real estate, electricity and gas, transportation and storage sectors.

Unofficial data show fiscal deficit breaching 2018 cap

1000 peso bills
BW FILE PHOTO

By Melissa Luz T. Lopez, Senior Reporter
THE GOVERNMENT breached its deficit limit in 2018, as state spending shot past target to outpace the increase in revenue collections.
Unofficial data secured by reporters showed the budget balance at a P558.259-billion deficit last year, substantially bigger than the P350.637-billion shortfall in 2017 and past the P526.8 billion programmed for the entire year.
The wider fiscal gap came as state disbursements reached P3.408 trillion, bigger than the P3.346-trillion target for the year and marking a 20.7% increase from the P2.824 trillion spent in 2017.
Economic growth settled at a three-year low of 6.2% in 2018 despite the hefty spending, with officials pinning the blame on elevated inflation.
Meanwhile, revenues totaled some P2.85 trillion, higher than the P2.82-trillion goal for the year. The amount was 15.2% more than 2017’s P2.473 trillion, fueled by implementation of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act (TRAIN).
The TRAIN was expected to generate an additional P63.3 billion revenues during its first year of implementation from the removal of some exemptions to value-added tax (VAT); increased tax rates for fuel, cars, tobacco, coal, minerals, documentary stamps; and new taxes for sugar-sweetened drinks and cosmetic procedures, to name a few.
However, December saw a wider P81.042-billion gap, the biggest since September, as state spending totalled P313.251 billion, down by 5.1% year-on-year, versus a P232.209-billion revenue haul, data showed.
As a developing economy, the Philippines operates on a budget deficit as it spends more than what it earns to support hefty funding needs for infrastructure development and social services.
This also meant that the deficit ceiling set at three percent of gross domestic product (GDP) may have been breached.
Michael L. Ricafort, economist at the Rizal Commercial Banking Corp., pegged the amount as equal to 3.2% of GDP. That compares to the 2.2% fiscal shortfall in 2017 and appears to be the widest since 2010.
Mr. Ricafort said the wider-than-programmed deficit is not a cause for concern just yet.
“Exceeding the said target may be justified by increased government spending on major infrastructure projects that may have future benefits in terms of further development and improved productivity in the economy in the long run,” he said.
Budget Secretary Benjamin E. Diokno said in January that the 2018 deficit ceiling was likely breached to settle at 3.1% of GDP amid brisk state spending.
The administration of President Rodrigo R. Duterte has programmed an even wider deficit this year at P624.4 billion — equivalent to 3.2% of GDP — to accommodate bigger provisions for infrastructure projects.
This should spur growth to 7-8%, with the state also counting on a one-time boost from election-related expenses.

WB pushes 4.5% of GDP infrastructure spending

DEVELOPING COUNTRIES like the Philippines should invest more to improve living conditions and contribute to global efforts against climate change, the World Bank said.
In its Beyond the Gap report, the multilateral lender cited the need to increase spending on key infrastructure to as much as 4.5% of gross domestic product (GDP) for low- and middle-income nations, so that they can be on track in achieving the Sustainable Development Goals (SDGs).
“Our analysis clearly shows that developing countries can build the climate-smart infrastructure they need by spending around 4.5% of GDP. The good news is this is close to what many countries already spend,” Kristalina Georgieva, interim president of the World Bank Group, was quoted as saying in a statement issued yesterday.
“With the right choices, infrastructure can be built that helps achieve globally agreed emissions targets. The focus must be on smarter and more resilient investments, not necessarily more money.”
The United Nations introduced the SDGs in 2015, setting global standards for poverty reduction and social inclusion; environmental sustainability, climate change and disaster risk management; accountable, responsive and participatory governance; fair and stable order based on international rule of law; as well as peace and security.
The World Bank study focused on policy approaches that would enable developing economies to provide universal access to water, sanitation and electricity; greater mobility; improved food security; better protection from floods; and eventual full decarbonization.
The report found that nations do not necessarily have to spend more, but will have to spend efficiently and pour equal attention to maintaining key infrastructure to maximize outcomes.
Across East Asia and the Pacific, the preferred investment scenario shows that investments for infrastructure capital must stand at four percent of regional GDP, while maintenance costs entail another 2.5% of GDP to ensure sustained quality. This covers expenses for electricity, transport, water supply and sanitation, irrigation and flood protection.
The World Bank’s recommendations include spending for renewable energy development in the interest of promoting long-term sustainability.
A separate study by the Asian Development Bank (ADB) showed that the Philippines needs to increase tax collections by at least 5.9-9.6% from 2015 to 2030 to fund increased spending for social services with the SDGs in mind.
MALPASS BACKED
In a related development, Finance Secretary Carlos G. Dominguez III threw his support behind the appointment of David Malpass as the new World Bank chief.
Mr. Malpass, who is the United States’ treasury undersecretary, is President Donald J. Trump’s nominee for the position.
This comes after the surprise resignation of ex-president Jim Yong Kim, who left the multilateral lender to take a premier post at a privately held infrastructure investment fund.
The Department of Finance said Messrs. Dominguez and Malpass talked over the phone on Thursday morning when the Cabinet official was in Osaka, Japan for joint meetings and a fresh leg of the Philippine Economic Briefing.
Under Mr. Malpass’ leadership, Mr. Dominguez said he expects the World Bank to “work closely” with the Japan-led ADB in terms of charting a global reform agenda for the Asia-Pacific.
Mr. Dominguez sits as the Philippine representative in the Board of Governors of the World Bank Group. — Melissa Luz T. Lopez

No host? No problem

LOS ANGELES — There will not be a host and Sunday’s Oscars ceremony will not open with the traditional monologue in which celebrities and politicians are skewered.
Yet, with rock band Queen, pop superstar Lady Gaga, and two musicals in the race for best picture, the highest honors in the movie industry will have an unusually strong music vibe as the Oscars seek to regain television audiences.
British band Queen, featuring Adam Lambert as lead vocalist, will open the Feb. 24 show with a live performance celebrating the box-office success of best picture nominee Bohemian Rhapsody, a representative of the band told Reuters.
Bette Midler, Jennifer Hudson, Jennifer Lopez, and record producer Pharrell Williams are also set to attend or present, along with James Bond actor Daniel Craig, tennis champion Serena Williams, Black Panther star Chadwick Boseman, and comedians Tina Fey and Amy Poehler.
Details have been scant about the first Academy Awards ceremony in 30 years to go ahead without a host, bringing a curiosity factor to the last and biggest awards show of the season. Comedian Kevin Hart withdrew from the host job in December after past homophobic tweets resurfaced.
“Hollywood is all about suspense,” said Tom O’Neil, founder of awards website Goldderby.com.
One thing is certain; it will not be shorter. A pledge to broadcaster ABC to keep the show to three hours was wrecked last week when the Academy of Motion Picture Arts and Sciences bowed to protests and scrapped plans to hand out four of the 24 Oscars during commercial breaks.
In 1989, the last time there was no host, the telecast opened with an 11-minute song and dance number featuring Rob Lowe and an actress dressed as Snow White that was widely derided.
Under pressure to deliver a compelling show for viewers after last year’s TV audience hit an all-time low, producers have made the most of the best original song contenders.
Lady Gaga and actor-director Bradley Cooper will perform a live duet of her hit song “Shallow” from their best picture contender A Star is Born, while Jennifer Hudson has been tapped to sing “Fight” from documentary RBG.
Ms. Midler will do the honors for the Mary Poppins Returns song “The Place Where Lost Things Go,” and country duo Gillian Welch and David Rawlings will perform “”When a Cowboy Trades His Spurs for Wings.”
“That is one of the places where the star wattage can make a difference,” said Alison Willmore, critic and culture writer at BuzzFeed News. “Lady Gaga is a music superstar and I would imagine her hard core fans will be tuning in for her,” Ms. Willmore added.
Organizers have not said whether rapper Kendrick Lamar will perform his Oscar-nominated song “All the Stars” from superhero movie Black Panther.
The academy on Wednesday said that Serena Williams, talk show host Trevor Noah, and Congressman John Lewis would appear to talk about what the best picture nominees mean to them. Spanish-American chef Jose Andres, musician Tom Morello, and Barbra Streisand will also be among those introducing the nominees.
Sunday’s show is also expected to dispense with the segments between award handouts that in recent years have focused on pizza deliveries or surprising people on bus tours.
“I’m not going to miss a lot of those little bits. That often feels like the part that makes the ceremony long, so maybe without a host it won’t feel like it’s dragging,” said BuzzFeed’s Ms. Willmore. — Reuters

Empire’s Jussie Smollett charged with faking attack

AMERICAN actor Jussie Smollett was charged on Wednesday with lying to police when he claimed he was attacked and beaten on the streets of Chicago by two masked men shouting racist and homophobic slurs, police said on Wednesday as they sought his arrest.
Mr. Smollett, a 36-year-old black, openly gay actor on the hip-hop TV drama Empire, ignited a firestorm on social media by telling police on Jan. 29 that two apparent supporters of US President Donald Trump struck him, put a noose around his neck and poured bleach over him.
“Felony criminal charges have been approved by @CookCountySAO against Jussie Smollett for Disorderly Conduct / Filing a False Police Report. Detectives will make contact with his legal team to negotiate a reasonable surrender for his arrest,” police spokesman Anthony Guglielmi said on Twitter.
The New York Times, citing unnamed law enforcement sources, said Ms. Smollett had been indicted by an Illinois grand jury that found probable cause that he had staged the attack.
“Like any other citizen, Mr. Smollett enjoys the presumption of innocence, particularly when there has been an investigation like this one where information, both true and false, has been repeatedly leaked. Given these circumstances, we intend to conduct a thorough investigation and to mount an aggressive defense,” Mr. Smollett’s attorneys, Todd Pugh and Victor Henderson, said in a written statement.
Twentieth Century Fox Television, which produces Empire, declined comment when told earlier on Wednesday that Smollett had been formally named a suspect in the case.
Earlier in the day, the studio said: “Jussie Smollett continues to be a consummate professional on set and as we have previously stated, he is not being written out of the show.”
‘MAGA COUNTRY’
Mr. Smollett has stood by his account even as police failed to find any evidence of an assault and suspicions grew on social media that it was a hoax.
Last week, Chicago police questioned two Nigerian brothers recognized from surveillance footage near the scene of the supposed attack, but released them two days later, without charge, in light of what investigators said was new evidence.
TV station CBS Chicago on Wednesday released a videotape it had obtained showing the two brothers buying a red hat and ski masks from a hardware store days before the alleged attack.
Mr. Smollett told police his assailants were white, that one wore a red hat, and that they shouted something about “MAGA country” — an apparent reference to Trump’s campaign slogan “Make America Great Again” — as they struck him to the ground, the New York Times has reported.
Chicago police say the charge of filing a false police report carries a maximum sentence of up to three years in prison.
Empire has earned multiple Emmy nominations since its 2015 debut. Mr. Smollett plays the character Jamal Lyon, a member of the family that is the focus of the show. — Reuters

Puregold to hike capital to P5B

By Arra B. Francia, Reporter
PUREGOLD PRICE Club, Inc. is hiking its war chest to prepare itself for future acquisition opportunities.
In a disclosure to the stock exchange on Thursday, the listed supermarket operator said its board of directors has approved to increase its authorized capital stock to P5 billion, consisting of five billion shares with a par value of P1 each, from P3 billion.
The Lucio L. Co-led firm will present the amendment to its stockholders for approval.
“The company is just getting ready if ever there are good opportunities, for example acquisitions in the future,” Puregold Vice-President for Investors Relations John Marson T. Hao said in a text message.
Puregold earlier raised P4.69 billion through a top-up share placement last January in order to finance its capital expenditures and potential acquisitions for the year. The company sold 104 million common shares at P45 each — or about 3.8% of the company’s total issued and outstanding stock — during the transaction.
“We are very near our maximum already for authorized capital,” Mr. Hao explained, adding that there are still no plans for equity capital raising.
Puregold plans to open a total of 25 new stores this year. The aggressive expansion is in line with the company’s target of opening 25 stores annually over the past few years, in a bid to expand its footprint to areas outside Metro Manila.
The company will also open four new S&R Membership warehouse stores. Two of the S&R stores will be located outside Metro Manila, while there will be one each inside the metro and Southern Luzon. Two more are scheduled to open in 2020.
As of end-September 2018, the company had a total of 397 stores nationwide, consisting of 345 Puregold stores, 16 S&R membership shopping warehouses, and 36 S&R New York Style Outlets.
The company previously acquired existing grocery chains to support its expansion, including the NE Bodega supermarket in Nueva Ecija, Luzon-based supermarket chain Budgetlane, and retailer B&W in Roxas City in Capiz.
Puregold’s net income attributable to the parent grew by 18% to P4.62 billion in the first nine months of 2018, driven by a 14% uptick in gross revenues to P102.64 billion. System-wide sales also firmed up by 14% to P99.82 billion in the same period.
The company is seen to benefit from strong consumer spending given the passage of the tax reform law last year and lower inflation.
Shares in Puregold jumped 1.46% or 70 centavos to close at P48.70 each at the stock exchange on Thursday.

Magsasaka TV moves to new channel

AFTER a successful first season last year, Magsasaka TV, the weekly TV show about “embracing agribusiness and tourism through the immense possibilities and power of farming,” is back for a second season every Sunday on a new network.
“We wanted to bring the show and all it stands for to a bigger station in order to reach a bigger audience,” Soliman Alaer “Dexter” Villamin, Jr., founder of DV Boer Farm International Corp. and the show’s showrunner said in a January press conference.
Magsasaka TV aired on the government-run PTV-4 in 2018. It now airs every Sunday, 5 a.m., on DZMM Teleradyo.
The show’s second season, hosted by Dexter Ganibe and Mr. Villamin, will feature “places and faces in vast farmlands over the country,” including some of the hundred or so sub-farms under the DV Boer Farm umbrella. A segment of the show is also dedicated to showing developments in the farming industry including best practices and new technology.
Mr. Villamin said their aim is to promote food security and encourage more people to consider farming opportunities in order to create “self-sustaining communities” and “provide livelihood to alleviate poverty among the underprivileged,” said a press release.
“I realized the irony behind the fact that many Filipinos were trying hard to be able to work abroad when in reality, greater opportunities thrived in their naturally very rich native land,” he said on the farm’s website.
The show’s first episode, which aired on Feb. 17, showed the beginnings of DV Boer Farm and its founder. Mr. Villamin worked as a pastry chef in a hotel in Bangkok, Thailand before trying his luck at agriculture and raising Australian Boer goats in an 15-hectare farm in Lian, Batangas in 2014. Now, it is a successful commercial stud farm for goats, and raises a variety of animals including sheep and grow different crops. It has over a hundred sub-farms some located in Sorsogon in Nueva Ecija.
“We call [the farm] an agricultural resort, you can learn a lot of things about farming — livestock farming in particular,” Mr. Villamin during the show’s first episode. — ZBC

SEC drafts circulars for Corporation Code changes

By Arra B. Francia, Reporter
THE COUNTRY’S corporate regulator is set to release memorandum circulars for certain provisions of the newly signed Revised Corporation Code, as the law itself will be self-executory.
Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino said the Revised Corporation Code — which President Rodrigo R. Duterte signed into law on Feb. 20 — will not require implementing rules and regulations (IRR).
“Except for memorandum circulars on certain provisions, there will be no IRR for it. It will be self-executory,” Mr. Aquino told BusinessWorld via text.
“Example would be the manner corporations will inform SEC if they opt to stick to a fixed term. The general rule now is perpetual existence except when they inform SEC they prefer to have a term. This applies retroactively to all existing corporation.”
Among the salient provisions in the Revised Corporation Code is the grant of a perpetual corporate term for existing and future corporations unless otherwise provided in their articles of incorporation.
The 38-year old Batas Pambansa Blg. 68 previously limited corporations to a 50-year term. The SEC said the revised code will eliminate the possibility of legitimate and productive businesses from prematurely closing down just because they failed to renew their registration.
Companies with expired registration papers may also apply for the revival of their corporate existence due to the passage of the new law.
The SEC Office of Commission Secretary said they will also be releasing guidelines for the use of remote communication in stockholder and board meetings.
The Revised Corporation Code will allow videoconferencing and teleconferencing during stockholder meetings, also allowing them to participate and vote in absentia.
The rules and regulations regarding stockholders’ participation and voting will take into account the company’s scale, number of shareholders or members, structure, and other factors consistent with the protection and promotion of shareholders’ or members’ meetings.
The commission has yet to give a timeline on when these memorandum circulars will be released.
Other provisions in the Revised Corporation Code include the one-person corporation, where the SEC will allow for the formation of a company with a single stockholder without a minimum authorized capital stock required. The old code required at least five stockholders to form a company.
The new law also mandates the commission to develop and implement an electronic filing and monitoring system to improve the ease of doing business in the country.
This includes the process of corporate name reservation and registration, incorporation, submission of reports, notices, and other documents required under the code.
The SEC already has a fully automated and online company registration system for pre-processing of corporations and partnerships and amendments of the articles of incorporation, among others.
“Collectively, the amendments are aimed at encouraging entrepreneurship and the formation of new businesses, improving the ease of doing business in the country, promoting good corporate governance, increasing protection afforded to corporations and stockholders, and deterring corporate abuses and fraud,” Mr. Aquino said in a statement.
Mr. Aquino added in a text message that the commission plans to focus on regulations that improve the ease of doing business, protect minority investors, and promote good corporate governance moving forward.

National Artist for Architecture Francisco ‘Bobby’ Mañosa, 88


NATIONAL ARTIST for Architecture Francisco “Bobby” T. Mañosa, passed away due to a lingering illness at the age 88 on Feb. 20.
“Even your death was as special as your life. Your legacy lives on,” wrote his daughter, interior designer Bambi Mañosa-Tanjutco, on Instagram on Feb. 20. According to his daughter’s post on Feb. 6, Mr. Mañosa was “fighting pneumonia.”
Known as the “Father of Philippine Neo-vernacular Architecture,” Mr. Mañosa championed Filipino architecture by mastering the DNA of the bahay kubo (nipa hut) and bahay na bato (literally “stone house,” the standard Spanish colonial structure locally). He believed that Filipino architecture must be “true to itself, its land, and its people.”
His landmark projects include the Tahanang Pilipino (popularly known as the Coconut Palace) at the Cultural Center of the Philippines (CCP) which was made almost entirely of coconut; the Amanpulo Resort with its deconstructed bahay kubos; the Our Lady of Peace Shrine — celebrating the 1986 People Power Revolution — at the corner of EDSA and Ortigas Ave., Quezon City, and the nearly open-air Chapel of the Risen Lord in Las Piñas City
“Intuitively, he pioneered the sustainable architecture — way before this environmental design movement broke ground in the Philippines,” noted a statement from the Cultural Center of the Philippines announcing his passing. “He conceptualized the ‘edible garden’ — a design where plants surround the external walls of the structures. This is quite evident in the San Miguel Building — one of his major works — with its rice terrace–like green balconies and ‘tukod’ (inwardly slanting windows).”
He was the recipient of several awards including Most Outstanding Professional Award in the Field of Interior Design from Philippine Regulation Commission in 2013; the Lifetime Achievement Award from United Architects of the Philippines in 2009; and Outstanding Artist for Golden Years of Service Award in the field of Architecture from the National Commission for Culture and the Arts in 2009.
In October 2018, he received the National Artist Award “for his valuable contribution to the development, preservation and promotion of the Philippine architecture.”
Tributes poured out on social media with the news of Mr. Mañosa’s passing.
The Palace expressed its condolences in a statement released by Presidential Spokesperson Salvador S. Panelo, highlighting his recieving the Order of National Artist (Orden ng Gawad Pambansang Alagad ng Sining) by President Rodrigo R. Duterte last year, and his achievements in the field of architecture. “Architect Mañosa will be missed but his influence and legacy will continue to live on. May perpetual light shine upon him as we pray for the repose of his soul,” it said.
“It was an honor to have known someone so innovative and nationalistic. We are sure his spirit will live on in the people that he helped and the work that he left behind,” said a Facebook post from the Museo Pambata, where Mr. Mañosa’s daughter, Ms. Mañosa-Tanjutco, is president.
Another aspect of the architect’s life can be seen in the tribute paid to him by The Executives Band on its Facebook page.
“The Executives Band, founded by the late Arch. Bobby Mañosa, which was founded by Mr. Mañosa, Senator Raul Manglapus, Chito Feliciano, Lenny Hontiveros, Bert del Rosario, Dading Morato, Freddie von Kauffmann, Rudy Topacio, and Phil Delfino — also which at the time was called The Executives Combo, has lost its last original member today. Architect Bobby Mañosa was our first pianist, and as such, his prestige and artistry elevated our ‘Combo’ to great heights.
“Our wish is that his family, and those whose lives he has touched and inspired, find solace in the thought that our dear Bobby is now jamming in heaven with all the greats, as he once did. He was such an inspiration to all.
“We pray that our music helps keep his legacy alive, as much as his architecture emboldens the Filipino essence to stand out and proud.”
The wake is at the Heritage Memorial Park on Feb 22 and 23 from 10 a.m. to 10 p.m. The Mañosa Group of Companies has said that in lieu of flowers, a donation to Tukod Foundation Inc. be made.
On Feb. 24, the Cultural Center of the Philippines will pay tribute to Mr. Mañosa with a necrological service at 9 a.m. which will be open to public. It will be followed by his internment at the Libingan ng mga Bayani in Fort Bonifacio, Taguig City.
Mr. Mañosa, who celebrated his 88th birthday on Feb. 12, was survived by his wife Denise and children Bambi, Gelo, and Dino. — Michelle Anne P. Soliman

Philippine National Bank raises P8.22B from 5.5-year LTNCDs

PHILIPPINE NATIONAL Bank (PNB) raised P8.22 billion from the issuance of long-term notes to investors, with the additional funding meant to manage debts and offer more loans.
In a disclosure, PNB announced that its latest offering of long-term negotiable certificates of deposit (LTNCDs) yielded the biggest turnout in the bank’s history, coming from an initial fund-raising target of P3 billion.
The offering was met by overwhelming demand from both retail and corporate investors and went nearly three times oversubscribed.
The bank owned by Lucio C. Tan said the additional capital is meant to extend the maturity of the bank’s debt profile as well as raise long-term funds as it hands out more loans.
The LTNCDs come with a 5.75% coupon rate, and are due in 5.5 years. The papers will be listed on the Philippine Dealing Exchange next Wednesday.
“This is a strategic exercise for us as we continue to grow our loan portfolio,” PNB President and Chief Executive Officer Jose Arnulfo “Wick” A. Veloso was quoted as saying in a statement.
“Raising long term funding at attractive levels offers our investors an opportunity to support our goals, while allowing us to also provide cost-competitive loans to our clients who would like to grow alongside our strong Philippine economy.”
Global banks HSBC and ING Bank N.V. were tapped as joint lead managers for the transaction. Other selling agents were the First Metro Investment Corp. and the Multinational Investment Bancorporation.
Last month, PNB revealed plans to raise as much as P100 billion in fresh capital through a series of bond offerings this 2019. The bank’s board of directors approved the creation of a peso bond and commercial paper program for the lender.
This follows the $300 million which PNB raise through medium-term notes in April 2018.
PNB, the fifth-biggest lender in the country, yielded a P7.5 billion net income from January-September, which is 67% higher from the comparable period in 2017. Total loans stood at P550.7 billion at end-September, against a P692.8-billion deposit base.
Shares in PNB closed at P48 apiece on Thursday, up 90 centavos or 1.91% from Wednesday’s P47.10 finish. — Melissa Luz T. Lopez

ERC seeks comments on rural property tax treatment

PHILIPPINE Rural Electric Cooperatives Association, Inc. asked the Energy Regulatory Commission to treat rural property tax as a pass-through cost that can be collected from customers.

THE ENERGY Regulatory Commission (ERC) has given stakeholders until Feb. 28 to comment on a petition filed by electric cooperatives to treat rural property tax (RPT) as a pass-through cost that can be collected from customers.
In its petition, the Philippine Rural Electric Cooperatives Association, Inc. (Philreca) asked the ERC to issue the necessary rules allowing the pass-through nature of the tax as it called the proposal “valid and timely considering that local government units (LGUs) had assessed and collected RPT” from electric cooperatives (ECs).
“The RPT should therefore be allowed to be a pass-through charge to the ECs member-customers subject to post verification and confirmation by the Commission similar to the Local Business and Franchise Tax,” Philreca said.
The association said the need for ERC rule-making became more urgent after the decision of the Supreme Court in the case of Manila Electric Co. versus Lucena City’s assessor and treasurer, where it affirmed that transformers, electric posts, transmission lines, insulators and electric meters are not exempted from RPT under the LGUs.
“The RPT is the lifeblood of the LGUs authorized by the Local Government Code of 1991 (Republic Act No. 7160) and thus the collection and payment thereof can no longer be avoided by ECs,” Philreca said.
“The ECs have no option but to pay the RPT otherwise the LGU can exercise its right to levy the real properties of the ECs to enforce collection thereof and thereby hamper the ECs from performing its mandate of providing electric service to its member-customers,” it added.
The association also said their existing tariff does not provide for surplus funds through a return on rate base and depreciation like those of private distribution utilities.
It said while private utilities can exercise certain degree of flexibility by charging the RPT against their surplus funds, the ECs are constrained to fund the same from their meager internally generated funds.
It added that in most cases, the funding come from loans obtained from the National Electrification Administration and financial institutions. Philreca also pleaded for other relief “deemed just and equitable.”
The ERC has set the hearing and public consultation on the petition between March and April in venues in Luzon, Visayas and Mindanao. — Victor V. Saulon

Instituto Cervantes celebrates Women’s Day with Spanish and Filipino films

THIS MARCH, Instituto Cervantes, in collaboration with the Embassy of Spain, Intramuros Administration, and the Film Development Council of the Philippines, will present “Espacio Femenino: Spanish and Filipino Female Filmmakers,” a film cycle featuring movies by female directors, with the aim of highlighting the contribution of women to the film industry.
The movies will be held every Saturday at 4 p.m. at Instituto Cervantes Intramuros, located at Plaza San Luis Complex, Intramuros, Manila.
The film cycle will open on March 9 with the Spanish film Los amores cobardes (2018) by Carmen Blanco. Eva, a strong and independent woman, returns to her hometown to spend the summer holidays with her mother and Gema, her only true friend. And there she meets her ex-boyfriend, who broke off with her without even saying goodbye.
Galician film A palabra xusta (2016) will be shown on March 16. A 92-year-old teacher returns to a house that has seemingly stood still in time and starts a conversation with her memories and the memory of the love of her life.
On March 23, several short films will be featured, such as Café para llevar (2014), Una vez (2015), Camino de agua para un pez (2016), Einstein-Rosen (2016), Lucrecia (2016), Conservas (2017), and a Filipino short film — Gikan sa Ngitngit nga Kinaidlaman (2017).
The film cycle closes with Con el viento (2017) by Meritxell Colell, which is about a dancer who has to help her mother sell the house after her father died. However, they are like two strangers who will have to know more about each other and learn to live together.
Admission to the film showings is free on a first-come, first-served basis. For details visit http://manila.cervantes.es, the Instituto Cervantes Facebook page, or call 526-1482.

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