ICTSI to start MICT expansion next week

October 9, 2018 | 12:05 am

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) said it has received the green light from the Philippines Ports Authority (PPA) to proceed with its expansion of the Manila International Container Terminal (MICT).
In a statement on Monday, the Razon-led listed port operator said the expansion of Berths 7 to 10 has been divided into two phases.
The first phase, which covers the construction of Berths 7 and 8 will begin on Oct. 15. The second phase will add a full back-up area for future Berths 9 and 10, and is expected to start on Feb. 19, 2019.
ICTSI Global Corporate Head Christian R. Gonzalez said the berth expansion, which will all have a controlling depth of 13.5 to 14.5 meters, “will further strengthen MICT’s capacity to service the world’s larger box ships and the increasing volume that comes with them.”
“On top of our commitments, the construction of these berths is our response to the need for an increase in capacity and increased productivity over the longer term. We also need to accommodate system changes, such as the steady increase in vessel size, the consolidation of major shipping players, and the introduction of rail services,” Mr. Gonzalez was quoted as saying in the statement.
ICTSI said the establishment of Berth 7 is part of its contractual obligations under its deal with the PPA. The company has allotted more than $380-million allocation for capital expenditure this year, including the MICT expansion.
The company also expects 16 new rubber-tired gantries to arrive in 2019, of which eight will be available by April. Two more super post Panamax quay cranes are also expected to be delivered by next year.
ICTSI has been operating the MICT, its flagship operation, since 1988. — Denise A. Valdez

Gov’t partially awards T-bills as rates rise

October 9, 2018 | 12:05 am

THE GOVERNMENT made a partial award of the Treasury bills (T-bill) on offer yesterday as investors priced in the slower-than-expected inflation print for last month.
The Bureau of the Treasury borrowed just P13.548 billion from the T-bills it offered on Monday out of the P15 billion it intended to borrow.
This, even as the offer was oversubscribed, with total tenders amounting to P20.1 billion, higher than the P17.1 billion offered by banks and other financial institutions a week ago.
Broken down, the Treasury fully awarded the 91-day papers yesterday after rejecting all bids for three consecutive auctions. Total offers reached P6.086 billion, higher than the P4 billion it wanted to raise.
The average rate stood at 4.404%, 85.5 basis points (bps) higher than the 3.549% fetched during the previous auction.
On the other hand, the government partially awarded the 182-day T-bills, accepting offers totalling P3.548 billion out of the planned P5 billion. Total demand was at P5.898 billion, fetching an average yield of 5.684%, 47.8 bps higher than the 5.206% registered last week.
For the 364-day papers, the Treasury borrowed P6 billion as planned out of the P8.102 billion worth of tenders it received. The average yield likewise climbed 23.5 bps to 5.883% from last week’s 5.648%.
At the secondary market prior to the action, the three- and six-month papers were quoted at 4.7818% and 5.4614%, respectively, while one-year securities fetched a 5.9839% yield.
At the close of the trading, the 91-day, 182-day and 364-day papers fetched 4.7975%, 5.4626% and 5.6878%, respectively.
After the auction, National Treasurer Rosalia V. De Leon said investors priced in the slower-than-expected September inflation print.
“After the print of September at 6.7% [which is] lower than the consensus print for September, they are indicating that most probably inflation has reached its peak and [it will] ease for the next months,” Ms. De Leon told reporters Monday.
Prices of basic goods rose by 6.7% in September from a year ago, marking a fresh nine-year high, although a tad slower than the 6.8% median in a BusinessWorld poll.
Both the central bank as well as the government’s economic team are of the view that inflation has already peaked and will clock in slower during the last three months of the year.
“Because they are also seeing…that inflation must have reached its peak last September, there is no reason for them to be asking for high bids,” Ms. De Leon said. “It would be on a downward trajectory.”
She added that the Treasury made a partial award of the six-month papers to temper the increase in yields on the paper.
“If we award in full, then the rates will really be going up so much so we just tempered it,” Ms. De Leon noted.
Meanwhile, a bond trader said the outcome of the auction came a surprise as the Treasury accepted bids which were much higher than market expectations.
“Possibly due to their borrowing requirements because for the past few auctions, they already rejected,” the trader said in a phone interview. “They were forced to accept because they also need the funds.”
The Treasury is raising P270 billion from the domestic market this quarter through auctions of securities, offering P180 billion in T-bills and another P90 billion in Treasury bonds.
Meanwhile, a retail Treasury bond (RTB) offer continues “to be in the menu” of the government for fund-raising in the fourth quarter as they are still looking at the liquidity.
“We will have to see how the next auctions [will perform], particularly the five-year bond,” she said.
Ms. De Leon added that the bond auction today “would be a good indication of market sentiments” as the five-year tenor is “at least in the intermediary part of the curve.”
Aside from this, the Treasury is also “readying the system” for the Marawi bond issue, which is eyed to raise P50-60 billion to fund the rehabilitation of the war-torn city, according to the Task Force Bangon Marawi last month. — Karl Angelo N. Vidal

MAS*H star Alan Alda to get lifetime achievement award

October 9, 2018 | 12:05 am

LOS ANGELES — Alan Alda, the M*A*S*H TV star with a long career on stage and screen, will receive the annual lifetime achievement award from the Screen Actors Guild, the actor union said on Thursday.
Alda, 82, who announced in July that he had been diagnosed with Parkinson’s disease, will receive the honor at the Screen Actors Guild (SAG) awards dinner in Los Angeles on Jan. 27.
Alda is best-known for his role as wisecracking Hawkeye Pierce in the 1970s comedy series about life in a Korean war medical facility. Yet he also wrote and directed many of the episodes of the series, whose 1983 final episode was watched by some 105.9 million Americans.
Alda went on to appear in political television drama The West Wing, as well as movies such as California Suite, Bridge of Spies, and Manhattan Murder Mystery.
For many years, he was also host of television’s Scientific American Frontiers before it ended in 2005.
“He is an artist whose body of work is a testament to the craft and the magic of our business. His ability to make us laugh, to think and to feel is extraordinary,” SAG president Gabrielle Carteris said in a statement.
In July, Alda announced that he had been diagnosed with the nervous system disorder Parkinson’s disease more than three years ago but that it has not stopped him from acting.
Alda will join the ranks of recent SAG lifetime honorees, Lily Tomlin, Debbie Reynolds, Carol Burnett, Betty White and Dick Van Dyke. — Reuters

Amaia expands Bulacan residential project

October 9, 2018 | 12:05 am

AMAIA Land Corp. has launched a 7.8-hectare expansion of its horizontal residential project in Sta. Maria, Bulacan.
In a statement, the economic housing unit of Ayala Land Inc. said the third sector of Amaia Scapes Bulacan will offer 306 new units.
The development will have amenities such as a multi-village pavilion, swimming pool, basketball court and a children’s play area. It will also have a patio and tree-lined spine road for joggers.
Amaia Scapes Bulacan is located along Sta. Maria-Pandi road in Brgy. Manggahan and Sta. Cruz in Sta. Maria. Residents can easily access key establishments such as Grace of Shekinah School, Sacred Heart Academy, Mateo’s Diagnostic and General Hospital, Rogaciano M. Mercado Memorial Hospital, and Sta. Maria Municipal Hall, as well as supermarkets Puregold and Waltermart.
The Bocaue exit of the North Luzon Expressway (NLEX) is also a 15-minute drive away.
Amaia Land said it offers easy payment options: cash, deferred cash, and bank financing.

Retailers can import up to 350,000 tons of rice

October 9, 2018 | 12:04 am

THE National Food Authority (NFA) on Monday approved the Department of Trade and Industry’s (DTI) proposal to allow major retailers to directly import up to 350,000 tons of rice.
“In principle, we have approved the DTI proposal that they be allowed to partner with a private trader for their Suki Store program and for their private supermarket rice distribution program. We approved in principle an allocation of 350,000 metric tons for DTI under this program on the condition that there will be a deed of undertaking,” Agriculture Secretary Emmanuel F. Piñol told reporters on Monday.
The approved volume is expected to arrive by November and will last 20 days. It will be allocated to retailers who can commit to help in lowering current rice prices.
Mr. Pinol said this is in addition to the 750,000 tons the NFA will import before the end of the year.
Trade Secretary Ramon M. Lopez said three retailers, including Puregold Price Club, Inc. and Robinsons Retail Holdings, Inc., have expressed interest in importing rice to sell it cheaply in their outlets.
“So far we have three major groups that indicated interest and then one group of supermarkets also, the Philippine Consumer Centric-Traders Association… At least yung interesado (At least those who are interested are) Puregold and Robinson,” Mr. Lopez said in a recording the DTI sent to reporters on Monday.
The Trade chief clarified that the 350,000 MT volume will be open to other interested parties, who can commit to the P38 per kilo price.
“This is the balanced price that we have to make available,” Mr. Lopez said, noting the set price already factors in the welfare of rice farmers whose palay yields from their ongoing harvest may face competition with the incoming influx of rice imports.
Both Puregold and Robinsons were sought for comment but has not replied as of press time.
Meanwhile, the DTI is also looking at measures to lower the price of chicken and possibly, pork.
Mr. Lopez said government will set a “moving price-ceiling” on chicken, a move intended to limit the profit of sellers at the wet market to P50 per kilo.
“On chicken, we agreed, although hindi pa kami nagpipirma. But we will issue a formal MoA (memorandum of agreement) with the DA (Department of Agriculture) to impose a moving price ceiling. In other words, it will move with farmgate prices…[A]t least we can control the trading part, the dressing, the logistics and the trading in between the farmgate and retailing. So that the max cap is P50,” he said.
The set margin price for chicken will be updated every three days. Violators will first be issued a show cause order after which fines will be imposed if chicken sellers fail to readjust their prices in accordance with P50 margin cap.
Mr. Lopez said the same measure may also be used to lower pork prices. — Janina C. Lim and Reicelene Joy N. Ignacio

PBCom raises P2.9B from LTNCDs

October 9, 2018 | 12:04 am

PHILIPPINE BANK of Communications (PBCom) raised P2.9 billion from its offer of long-term negotiable certificates of deposit (LTNCD), which will be used to support its long-term funding business.
At the ceremonial listing on Monday at the Philippine Dealing & Exchange Corp. (PDEx) in Makati City, the Co-led PBCom said it raised P2.903 billion from the peso-denominated issuance.
The notes will mature in 5.5 years and carry an interest rate of 5.625% to be paid quarterly until 2024.
The issuance is the maiden bond offer of the bank, and makes up the first tranche of its P5-billion LTNCD program approved by the central bank last July.
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.”
PBCom President and Chief Executive Officer Patricia May T. Siy said the additional capital raised from the LTNCD offering will be used to support the bank’s long-term lending business.
“The funds that we have raised will all be used to fund PBCom’s focus in our long-term lending activities for both corporate and consumer markets,” Ms. Siy said in her speech.
She added that the lender is “opportunistic” on its loan growth as it has outpaced the industry average for the past few years.
“We actually don’t target a specific number. [In our case], we’re always opportunistic. When there is a good project, we take a look at it,” she told reporters after the listing ceremony.
ING Bank N.V.-Manila branch and Development Bank of the Philippines served as joint lead arrangers and bookrunners of the offer. These lenders acted as selling agents for the offer alongside PBCom.
PBCom’s listing brings the total volume of outstanding securities listed at the PDEx to P935.97 billion, floated by 48 companies.
A number or banks have been raising additional capital ahead of tighter risk management requirement by the central bank which will take effect next year under the international Basel 3 standards.
Metropolitan Bank & Trust Co. as well as Rizal Commercial Banking Corp. have also offered LTNCDs to support their funding needs, raising P8.68 billion and P3.58 billion, respectively.
PBCom posted a P146.3-billion net income in the second quarter, declining by 20% from the P183.8 million tallied a year ago.
Shares in PBCom closed at P24.70 apiece on Monday, up P4.25 or 20.78%. — Karl Angelo N. Vidal

Sony superhero outdraws Lady Gaga’s starring role

October 9, 2018 | 12:04 am

A POORLY reviewed Marvel movie from Sony Corp. outdrew Lady Gaga’s widely acclaimed remake of A Star Is Born at the North American box office, proving a superhero and lots of special effects still rule the day with film fans.
Venom, a Marvel movie about a symbiotic alien who bonds with a journalist, collected $80 million in weekend sales to open at No. 1 in US and Canadian theaters, ComScore Inc. estimated in an e-mail Sunday. That beat Lady Gaga and Bradley Cooper in Warner Bros.’ A Star is Born, which garnered $41.3 million to place second.
Analysts have been concerned in recent years that too many superhero movies would lead to costly flops. But Sony, Walt Disney Co., 21^st Century Fox Inc., and AT&T Inc.’s Warner Bros continued to develop comic-book film franchises and the throngs keep turning out.
Sony Pictures has the rights to certain Marvel characters, including Spider-Man, even though Disney owns Marvel Entertainment. Venom is part of the Culver City, California-based studio’s revamped approach to superheroes. It teamed up with Marvel Studios President Kevin Feige on a successful reboot of Spider-Man and is planning other spin-off-like films based on characters including Silver & Black.
In Venom, Tom Hardy plays Eddie Brock, an investigative journalist trying to expose an unethical scientist who wants to test alien parasites on humans. He becomes infected and develops superpowers, launching the origin story of his symbiotic alter-ego Venom.
The movie cost $100 million to make, before marketing costs, and was forecast to open to with sales $60 million, according to Box Office Mojo. It’s the widest October release ever and topped the previous record $55.8 million debut for the month set by Gravity in 2013.
Critics panned the film’s chaotic plot, with only about 30% recommending it, according to RottenTomatoes.com.
A Star Is Born, on the other hand, drew recommendations from 92% of reviewers, who praised the latest version of a film story that dates back to 1937.
Cooper, a four-time Oscar nominee, co-wrote, co-produced and stars in the film, which also marks his directorial debut. Gaga, in her first feature role on the big screen, plays Ally, a down-on-her-luck singer who falls for Cooper’s alcoholic rock star Jack.
He gives her the confidence and platform to propel her career. But as her star rises, his starts to wane and he is crippled by his drinking.
A Star Is Born cost about $40 million to make. It was set to open with weekend sales of $42 million to $49 million, according to forecasters. — Bloomberg

AboitizLand unveils projects in Tarlac, Nueva Ecija

October 9, 2018 | 12:04 am

ABOITIZLAND, Inc. continues to expand in Luzon with new residential community projects in Nueva Ecija and Tarlac.
In a statement, the property arm of Aboitiz Equity Ventures, Inc. (AEV) said it recently launched two mid-market residential developments under the Ajoya brand.
Ajoya Cabanatuan is a 19-hectare residential community in Barangay Valle Cruz, Nueva Ecija. Ajoya Capas covers 13 hectares in Barangays Talaga and Estrada in Tarlac.
AboitizLand said the two Ajoya projects will have 1,000 housing units each. The modern housing units are inspired by the “Bahay na Bato,” while the communities will have a town plaza, a clubhouse, a pool, and pocket parks.
“With the launch of Ajoya as our flagship mid-market residential product in Luzon, we are excited to finally bring the distinct spirit of Aboitiz- Land communities to our prospective vecinos (neighbors) in Nueva Ecija and Tarlac,” Rafael Fernandez de Mesa, AboitizLand first vice president, was quoted as saying in the statement.
AboitizLand said unit prices at Ajoya Cabanatuan range from P3.2 million to P5.5 million, while those at Ajoya Capas range from P1.7 million to P3.5 million.
“With more than two decades in the industry, we are now ready to aggressively expand our presence nationwide while maintaining our stronghold in Cebu,” Mr. de Mesa said.
Last year, AboitizLand launched the 43-hectare Seafront Residences in San Juan, Batangas. The beachside residential development is the company’s first full build-out property, and can accommodate 800 homes.
The Cebu-based property firm expanded in Luzon in 2014 when it acquired the 485-hectare industrial park Lima Technology center in Lipa-Malvar, Batangas.
In Cebu, AboitizLand has built 23 communities, industrial, residential, and commercial properties. — Vincent Mariel P. Galang

CAC recalls over 2,000 Kia Carnival VQ units

October 9, 2018 | 12:03 am

COLOMBIAN Autocar Corporation (CAC), the authorized distributor of Kia cars in the Philippines, has recalled 2,379 units of Carnival VQ vehicles to upgrade their integrated circuit modules (ICM).
In a Sept. 10 letter to the Trade Department’s Consumer Protection and Advocacy Bureau posted on the agency’s website, CAC President Elena Mari Ginia R. Domingo said the local recall covers only certain vehicles belonging to a production batch of Carnival VQ models.
Ms. Domingo said the move, which began on Sept. 17, “is in line with the recall program being conducted worldwide by KIA Motors Corporation for the [ICM] only, which has been improved to avoid the ICM relay box from getting damaged.”
ICMs in automotives serve as a microcontroller for a vehicle’s system to ensure smooth information handling and safety actions.
Owners of the Carnival VQ are advised to contact the company to know if their unit is affected by the recall. A list of the vehicle identification numbers is posted on the DTI website’s advisories section.
All parts and services in the recall are free of charge, Ms. Domingo added.
Incorporated in May 1994, CAC currently has 39 dealerships nationwide. The Carnival VQ is the second generation type for Kia’s minivan types. — Janina C. Lim

Decline in Asia dollar bond sales to spill into 2019 on yield woes, volatility

October 9, 2018 | 12:03 am

ASIA’S dollar bond sales are set to end 2018 with a whimper after a sizzling start. Next year’s prospects may prove dimmer, bankers and investors say.
Volatile emerging markets, trade wars and now surging US Treasury yields have created a perfect storm that’s battering sentiment across Asia. A Bloomberg survey expects primary issuance to slump as much as 46% in the fourth quarter and Credit Suisse Group AG expects more turbulence going into 2019 that will test borrowers’ mettle.
“Next year is likely to remain challenging for corporates that do not have strong credit metrics,” said Terence Chia, head of Asia Pacific debt capital markets syndicate at Credit Suisse in Hong Kong. “A market turnaround in the near term is unlikely and we expect issuance of bonds from lower rated corporate credits will continue to decline in 2019.”
The issuance drop “would potentially be realized across all regions, sectors and credit buckets,” said Bryan Carter, London-based head of emerging-markets debt at BNP Paribas Asset Management Ltd. “Overall, we view the decrease in supply as net positive. We continue to see volatility across EM markets on the back of political uncertainties, growth concerns and reduction in capital flows into EM.”
Dollar-denominated bond sales in Asia excluding Japan will probably hit $50 billion to $65 billion this quarter, compared with the year-earlier period of $93.4 billion, according to 11 out of 22 bankers and analysts surveyed by Bloomberg.
Some are expecting market sentiment to continue weakening in 2019, especially for high-yield credits, the survey showed.
So far this year, dollar bond issuance has tumbled 14% from a year earlier to $199 billion. JPMorgan Chase & Co. last month cut its new supply forecast for the year to $233 billion from $245 billion.
The softer market tone and jump in US Treasury yields have made investors cautious and could delay some of the supply coming to market, according to Lorna Greene, a director of debt syndicate and origination for Asia at National Australia Bank Ltd.
“Furthermore, the volatile market backdrop may see some of these issuers change focus to the EUR market,” Greene said on Friday.
Given the current market conditions, investors are not eager to go further down the credit spectrum just for a few more basis points, said Credit Suisse’s Chia.
“Against the current market backdrop, investors have a preference for high quality credits in non-cyclical sectors and transactions with transparent execution and pricing,” he said. “As a result, Asian issuers will have to be flexible and nimble in order to opportunistically tap the market as and when there are windows, which are likely to be short-lived.” — Bloomberg

New cut of Liway to go on general release

October 9, 2018 | 12:03 am

A NEW cut of the Martial Law film Liway will be shown for the movie’s nationwide run which starts on Oct. 10.
The movie premiered at the Cinemalaya Film Festival where it emerged as the highest-grossing film of the film fest’s 14-year history.
Based on director Kip Oebanda’s childhood experiences, it stars Glaiza de Castro as Liway/Inday, a young mother raising her child as normal as possible in a makeshift prison camp for dissidents during Martial Law. Using stories and songs, she tries to find joy even in their difficult life. Then she must confront the difficult realization that living outside the prison camp, away from her, may be in the best interest of the child. It is ultimately a story of mother’s great love for her son and the incorruptible light of truth amid dark hopelessness.
The film has garnered excellent reviews and strong word-of-mouth. Aside from being the Cinemalaya 2018 Audience Choice winner, it also won Special Jury Commendation and Special Jury Citation for child actor Kenken Nuyad. At its full-house Cinemalaya gala night, Liway received more than seven minutes of applause.
Succeeding screenings have continue to be SRO events, including the most recent one held at the University of the Philippines Film Center on Sept. 21 to commemorate the 46^th anniversary of the declaration of Martial Law.
The film also stars Dominic Roco, Soliman Cruz, Joel Saracho, Nico Antonio, Sue Prado, Paolo O’hara, Upeng Galang-Fernandez, Vance Larena, and Khalil Ramos. Child actor Kenken Nuyad portrays Inday’s son, Dakip.
The screenplay is by Kip Oebanda and Zig Dulay. The movie is produced by VY/AC Productions and Exquisite Aspect Ventures.
The version that will go on wide release includes elements not seen at prior previews. “We wanted to enhance the experience of the moviegoer as we go nationwide,” explained writer-director Mr. Oebanda. “Thus, those who have seen Liway have a reason to watch it again, and those who have not seen our movie yet have more reason to do so,” added producer Alemberg Ang.
In the light of recent discussion about the crucial period in Philippine history, Liway seeks to serve as testimony to the experiences of Martial Law prisoners. Mr. Oebanda said at the UP screening that “The point of the film is to show that we are true, that our stories and narrative are real.”
“Liway is an affecting piece celebrating the personal journey of Kip Oebanda that bears much importance at a time when national memories are forgotten…,” wrote writer/director and professor Jose Javier Reyes on Facebook.
“Liway is a story that deserved to be retold: the sacrifices endured if we live with compassion. It portrays the cost of genuine freedom as much as we can truly pass on to our children,” tweeted Supreme Court Associate Justice Marvic Leonen after watching Liway during its Cinemalaya run.

Eton WestEnd Square’s co-lifestyle concept

October 9, 2018 | 12:03 am

IN MAKATI CITY, a “mini-township” is opening with a new co-lifestyle concept. A development by Eton Properties Philippines, Inc., Eton WestEnd Square is envisioned to attract tech and online companies, eco-friendly shops, social enterprises, homegrown restaurants, and other new enterprise concepts. The development’s location in West Makati — at the corner of Chino Roces Ave., Yakal, and Malugay streets — offers easy access to buses, taxi cabs, shuttle vans, jeepneys, and tricycles. Part of the development is the eWestMall, two storeys of retail spaces with a total leasable space of approximately 3,750 square meters. Meanwhile, the eWestPod offers four floors of work spaces best suited for BPOs, tech companies, and start-ups. The low-rise office building has 13,955 square meters for lease. The mall and workspace are near Blakes Tower, a 36-floor mixed-use development that houses serviced apartments, a dormitory, and boutique offices. It will feature shared amenities such as breakout rooms and lounge areas per floor, and features amenity-filled serviced apartments hinged on the co-living concept. Blakes Offices offers boutique offices and co-working areas. “At Eton WestEnd Square, community is king. With opportunities for leisure enjoyment, career pursuits, and quality residences in one mini-township, a self-sustaining and vibrant enclave emerges,” Martha Herrera-Subido, Eton’s AVP for Marketing, PR and Corporate Communications was quoted as saying in a release. Eton WestEnd Square is set to complete eWestPod and eWestMall this year.