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Landbank starts offer to acquire PDS shares

LAND BANK of the Philippines (Landbank) will start making offers to shareholders of the country’s fixed-income exchange this week, with the state lender hoping to sign enough purchase agreements and acquire a majority stake within a month.

Landbank President and Chief Executive Officer Alex V. Buenaventura said on Friday that the state-run lender will be reaching out to current shareholders of the Philippine Dealing System Holdings Corp. (PDS) today to make counter-offers for existing shares, amid agreements previously secured by the Philippine Stock Exchange (PSE).

“We will offer starting [this] week so that will be March 5. April 5 will be the deadline to accept the offer,” Mr. Buenaventura told reporters late Friday.

“With respect to the offer period, I said we cannot keep the development of the financial markets waiting,” he added.

“Landbank is serious and we intend to move fast — we plan to lock this deal up in 30 days.”

Last week, Landbank’s board of directors approved a plan to acquire 66.67% of PDS at P360 per share, kicking off a showdown between the biggest state-owned lender and the local bourse operator.

The PDS Group operates trading, clearing and settlement for bonds and foreign exchange, namely the Philippine Dealing & Exchange Corp., the Philippine Depository & Trust Corp., Philippine Securities Settlement Corp.

The PSE initiated steps for the PDS buyout as early as 2013, as it looks to merge the country’s equities and fixed-income bourses.

Since June last year, the PSE has signed share purchase agreements with the Bankers Association of the Philippines (BAP); Whistler Technologies Services, Inc.; Investment House Association of the Philippines; The Philippine American Life and General Insurance Co.; FINEX Research and Development Foundation, Inc.; San Miguel Corp. and Tata Consulting Services Asia-Pacific Pte. Ltd., giving the PSE a 69.03% total stake in PDS.

The Philippine Competition Commission approved these agreements in November, even as the Securities and Exchange Commission (SEC) initially rejected the PSE-PDS merger in 2016.

Currently, Landbank owns 1.56% of PDS through the BAP, which holds a cumulative 13.26% share for itself and its member-banks.

‘IN CASH’
Landbank intends to buy 4.167 million common shares worth a total of P1.5 billion, with Mr. Buenaventura describing PDS as a “potentially profitable investment” for the bank.

“Having offered something higher than what PSE is offering at P320 — and we are paying in cash unlike PSE’s offer of paying in shares — I think we have a very much more attractive offer,” the bank president added, noting that the funds will be drawn from Landbank’s existing capital.

Landbank booked a P14.05-billion net income in 2017, four percent more than P13.58 billion the preceding year.

The ultimate decision, however, lies in the hands of the SEC as it will determine which buyer can secure the biggest stake in PDS.

The SEC imposes a maximum of 20% industry ownership and five percent individual ownership of an exchange, but may grant exemptions if a bigger control “will not negatively impact on the exchange’s ability to effectively operate in the public interest.”

Mr. Buenaventura said the Landbank has already submitted its request for an exemption from this ownership limit and has made its case before the corporate regulator.

“We presented to them (SEC) our proposal. They said they have to decide to whom to give the regulatory relief — to PSE or to us — because they can only give one regulatory relief,” the Landbank chief said.

Mr. Buenaventura said Landbank’s control of PDS will help aid financial market reforms as the state lender plans to take bond transactions to a wider market via its nationwide branch network, as it envision corporate bonds floated by small- and medium-sized businesses. — Melissa Luz T. Lopez

Blockchain poised to change way of doing business

By Krista A.M. Montealegre
National Correspondent

TOKYO — Bitcoin has hogged the headlines for its price volatility and cyberheists, but the promise of the emerging digital currency lies in blockchain, the disruptive technology behind the cryptocurrency.

“Bitcoin is not an investment scheme. It is a new kind of technology,” Miguel Antonio C. Cuneta, co-founder of Philippine-based SCI Global Ventures, Inc., said during the Philippines-Japan Investment and Cryptocurrency Forum organized by Japan Cashless Association and Noah Foundation at the Four Seasons Hotel here on Sunday.

Bitcoin’s value had been going up since it was invented in 2009, peaking at almost $20,000 apiece in December. It had then plunged below the $10,000 mark amid concerns of increased regulation in South Korea and China, but the price has stabilized around $10,000 per unit.

Cryptocurrencies like Bitcoin are not regulated by any state or central bank.

They rely on cryptography to secure and verify transactions as well as control the creation of more units.

While much of the craze for now centers on the price, the potential is in the technology underlying cryptocurrency known as blockchain, where transactions are better secured by a peer-to-peer network of computers and can be verified.

Blockchain is poised to change the landscape of finance, governance and banking, the same way the Internet has disrupted telecommunications, media and publishing sectors, Mr. Cuneta said.

Noting that an undeveloped payments infrastructure and sheer size of the unbanked can enable Southeast Asia to become a cryptocurrency and blockchain hub, Mr. Cuneta said: “Technology wants to solve a problem. In Southeast Asia… you have a lot of problems…We’re hungry. We’re thirsty for options.”

The global financial crisis in 2008 led to increased regulation that raised the hurdle to opening and maintaining bank accounts.

But now, cryptocurrencies have allowed users to bypass conventional financial channels.

The Union Bank of the Philippines, Inc. is one of the more aggressive banks in embracing technologies like blockchain to do business.

“It is important for people (and) organizations in mainstream activities to get on board even if it is just a learning system,” UnionBank Chairman Justo A. Ortiz said.

“If you wait for the perfect environment to appear, you’re going to meet perfect competition.”

UnionBank is also empowering rural banks like Cantilan Bank in Davao through blockchain, giving them and their customers access to universal banking products.

“For rural banks, blockchain isn’t just about being included in the financial services industry. It may well be the answer to their survival because they are going down,” said Ramon Vicente V. De Vera, head of fintech business group at UnionBank.

Blockchain technology is also used in various applications in the Philippines. Coins.ph allows users to pay bills, buy load, buy Bitcoin and send money even without a bank account, while Salarium Payments offers a program that seeks to improve the efficiency and accuracy in managing payroll systems of companies through a self-service portal.

Likewise, non-profit organization Noah Foundation hopes to create a “crypto-empowered” Philippines through the use of its own tokens in the ecosystem of its services and projects. Noah Foundation Director Josef Werker is leveraging heightened interest in the Philippine market with the sale of Noah Coins to Japanese investors through an initial coin offering (ICO), involving sale of a virtual currency to the public to raise capital for start-up companies or funding projects.

Japan is the global leader in the development of cryptocurrency markets after becoming the first country to regulate exchanges at the national level, a stark difference compared to crackdowns in South Korea and China.

The digital token can be used in a number of projects that Noah is developing in the Philippines such as a mixed-use resort development on the undeveloped portion of the Dakak Beach Resort in Zamboanga del Norte, an organic agriculture program for farmers in Mindanao and a real estate project that will form part of Horizon Manila, an upcoming 419-hectare central business district on reclaimed land, according to its Web site.

Zamboanga Del Norte Rep. Seth Frederick P. Jalosjos, whose family has partnered with Noah Foundation for the Dakak project, does not believe that regulation can get in the way of unlocking the potential of this technology, saying that the emerging industry “can be monitored but it can’t be stopped.”

“We are holding their (regulator’s) hand while we are taking a step forward,” Mr. Jalosjos said.

The Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission have moved to regulate cryptocurrency transactions and ICOs to protect investors and reduce the risk of fraud. The BSP introduced in February last year Circular No. 944, regulating virtual currency exchanges — not the cryptocurrencies themselves — by requiring them to be registered and to install internal controls against money laundering. So far, the central bank has authorized two virtual currency exchanges: Betur or Coins.ph, and Rebit.

In the Philippines, virtual currency transactions have been steadily growing, averaging over $8.8 million per month.

“The regulation has evolved with us,” Coins.ph Founder Ron Hose said.

“The regulators in Philippines know we need to drive financial inclusion.”

Sy-Tieng group formalizes $12-B Sangley airport plan

A CONSORTIUM composed of Solar Group’s Wilson Y. Tieng and tycoon Henry T. Sy, Sr. has submitted to the government its unsolicited proposal for a $12-billion airport in Sangley, Cavite.

In a statement, the Sangley Airport Infrastructure Group, Inc., led by All-Asia Resources and Reclamation, Corp. and Belle Corporation, said it is proposing to build a new regional airport hub that can accommodate about 120 million passengers annually once fully developed.

Under its proposal for the Philippine Sangley International Airport (PSIA), the development of the airport component is pegged at around $12 billion, and involves a concession period of 50 years.

The project will start with the reclamation of about 2,500 hectares of land north of the Sangley peninsula, to be used for the development of airport infrastructure and a commercial establishment. The plan also includes the development of airside and landside facilities and transportation infrastructure.

“The PSIA will be designed with two parallel independent runways and sufficient airside and terminal capacity to accommodate future demand for domestic, international and transfer traffic, not only for the Philippines but for all Southeast Asia. The new airport hub is also envisioned to compete with other premier Southeast Asia airports like the ones in Bangkok, Seoul, Hong Kong, and Singapore,” Sangley Airport Infrastructure Group said in a statement.

The PSIA plan also includes the rehabilitation of the Danilo Atienza Air Base, which will be used in the future as a general aviation airport to decongest the Ninoy Aquino International Airport (NAIA) terminals. The air base will turned into an “aerotropolis” district which will accommodate service buildings, office towers, hotels, and conference centers.

The Tieng-Sy consortium said the new airport will also “reduce restrictions on land in Metro Manila.” It will also operate “with a significantly reduced noise impact” than the NAIA since its location is off Manila Bay.

In 2016, the Tieng-Sy consortium had proposed a $50-billion project to develop an airport and economic zone off Sangley Point.

The government recently received two proposals for the rehabilitation of NAIA, which accommodated over 39.5 million passengers in 2016, way more than its 30.5-million designed capacity.

The “super consortium” of conglomerates Aboitiz Infra Capital, Inc., AC Infrastructure Holdings Corp., Alliance Global Group, Inc., AEDC, Filinvest Development Corp., JG Summit Holdings, Inc. and Metro Pacific Investment Corp., submitted to the government on Feb. 13 a P350-billion proposal for the rehabilitation of NAIA to turn it into a regional hub, with a concession of 35 years.

The consortium of Megawide Construction Corp. and Bangalore-based GMR Infrastructure Ltd. submitted to the government last week a $3-billion proposal to improve NAIA, with a concession of 18 years.

The “super consortium” is considering putting a third runway to decongest the airport, but GMR-Megawide has already ruled out putting one, citing reasons such as possible reclamation needed and only marginal capacity to be added by a third runway and said will improve airside capacity by extending the existing runways and adding additional parking bays and rapid exit taxiways.

Department of Transportation Secretary Arthur P. Tugade has said that the agency will adopt a “the more, the merrier” type of strategy, saying that big metropolises such as London and Tokyo have multiple airports. The government is currently working on the terms for the operations and maintenance bidding of the expansion of Clark International Airport (CIA). GMR-Megawide last December won the contract to construct the new CIA terminal.

San Miguel Corp. has also submitted a proposal for an airport in Bulacan. The conglomerate has been granted original proponent status and its project is under evaluation by the National Economic and Development Authority — Investment Coordination Committee. — Patrizia Paola C. Marcelo

With new recipes, The Bistro Group hopes to attract millennial tastes

By Anna Gabriela A. Mogato,
Reporter

KNOWN FOR BRINGING premium casual dining brands like Italianni’s and TGIFriday’s to the Philippines more than 20 years ago, The Bistro Group is continuously changing its recipes to keep up with the new trends in the food business.

Jean Paul Manuud, The Bistro Group president and chief operating officer, said the company is looking to cater to the “millennial taste” as new generation reaches the age of its traditional core market from early 30s to mid-40s.

“This is my personal opinion: they change the landscape of the restaurant business. Somehow, the trend, the preference, the mood is totally different from how we used to work. What we’ve seen so far, millennials like to explore new tastes. They like beautiful, ‘Instagrammable’, delicious food,” he told BusinessWorld in a recent interview.

However, Mr. Manuud noted the company has to consider the prices of its new dishes, since the millennials have a certain limit on how much they are willing to spend in a restaurant.

“It’s not that they can’t afford. We want to broaden our market that’s why we adjusted our menu to serve from this price point to this price point to make sure that everyone can go to our restaurant,” he added.

With 18 concepts and 70 branches under The Bistro Group, Mr. Manuud said they are finalizing deals to bring two to three more US-based concepts.

The Bistro Group’s executive chef Josh Boutwood is behind two new restaurants “Helm” and “Savage,” which are located at Arya Residences in Bonifacio Global City.

The group continues its expansion in Metro Manila, opening 10-12 branches annually. It is also expanding in untapped markets in the south, particularly Cebu and Iloilo.

Mr. Manuud said the company is also mulling the possibility of a stand-alone restaurant in Makati, after years of focusing on malls.

“You see the economy now is thriving, it’s moving, it’s exploding and we want to be a part of that. Operating there is something that is going to be favorable for us. I always have this principle of having a local partner to operate in their territory. I don’t think we can operate better without them,” he added.

“We can provide them the support, the training, anything that they will need to be successful but operating in a daily basis, to run in a daily basis in a market where we don’t know, I would be more confident to have a partner with a local business or management in that area.”

The Bistro Group is looking for franchising partners for its brands such as Bulgogi Brothers Denny’s, Baker & Cook, Fish & Co., and Ka Tunying’s Café.

While some may be tempted to get a franchise — which could range from P10 million to P75 million for a complete package, Mr. Manuud said the restaurant business is not for everybody.

“It’s not easy to run a restaurant. Today it could be fine, tomorrow, the cook can be in a bad mood and the food will be bad. There are a lot of variables. Another restaurant will open and they will take a lot of your market share. It’s very risky, very difficult, very stressful,” he added.

“When you love engaging the customers, this is for you. A lot of people could be so intelligent and so good but if they engage with a customer, this could not be for them.” Mr. Manuud noted The Bistro Group takes a two-pronged approach to sustain its growth: franchising international brands, as well as developing their own restaurants.

The Bistro Group currently operates all its restaurants, but is building its brand through franchising.

Mr. Manuud said its franchising opportunity comes with a existing customer base for its brands, as well as support for staffing, training, operational management and marketing.

One thing he learned as a franchisee is to be flexible and listen to new ideas.

“This is crucial because success depends on a good relationship with your partners,” he said.

Acudeen on track to hit $30M worth of invoices this year

FINANCIAL technology start-up firm Acudeen Technologies, Inc. said it is on track to reach $30 million worth of invoices this year, as it grows its network for micro to small and medium enterprises (MSMEs).

In a statement issued over the weekend, the company said it has signed a $6-million deal with Yuchengco-led Rizal Microbank, a subsidiary of listed firm Rizal Commerical Banking Corp., which will further strengthen its vision toward financial inclusion for small businesses.

“Financial inclusion is about providing all Filipinos access to affordable and client-centered financial services that can help them build a better life for themselves and their families,” the company said.

Acudeen connects MSMEs with 30- to 120-day receivables to buyers willing to invest in the business through its online platform. The venture recognizes the problems that many SMEs and MSMEs face regarding financing, where a lack of access to funding can stifle their growth.

Last year, Acudeen recorded $3 million worth of invoices, providing liquidity to over 400 MSMEs. Should the company hit its $30-million target by the end of the year, this would make Acudeen one of the fastest growing startups in Asia.

Founded in 2016, Acudeen is currently chaired by former 8990 Holdings, Inc. President and Chief Executive Officer Januario Jesus Gregorio B. Atencio III. The company’s name is derived from the Filipino term Ako Din (Me Too), as it pushes to help the unbanked and underbanked MSMEs in emerging markets.

The Bangko Sentral ng Pilipinas itself has been pushing for financial inclusion in the country since 2000, where it has advocated for products and services that will benefit people who will access the service. — Arra B. Francia

Going beyond basics

UNIQLO PHILIPPINES is welcoming the hot summer season by presenting some of boldest prints to have ever been used by the Japanese apparel brand — including a collaboration with Finnish design firm Marimekko as well as new additions to the SPRZ NY UT (Uniqlo T-shirts) line.

“This is our first collaboration with Marimekko. [In this collection] Marimekko’s aesthetic in terms vibrant prints and designs, married with our casual, everyday look makes perfect design,” Georgette Barrera-Jalasco, marketing manager of Fast Retailing Co. (the Philippine distributor of Uniqlo), told BusinessWorld during the collection’s launch on March 1 in One Canvas Events Place, Makati City.

The Helsinki-based design firm, which is known for its signature prints like the poppy print pattern which came out in 1964, brings its colorful aesthetic over to Uniqlo’s basics including graphic T-shirts, swingy sleeveless blouses, wide-leg cropped pants, sleeveless shift dresses, tote bags, and canvas sneakers. The female-only line is scheduled to arrive in April.

FROM CHAIR TO T-SHIRTS
Aside from Marimekko, Uniqlo’s T-shirt line is featuring graphic prints created by SPRZ NY, a collaborator since 2014. Taking cues from pop culture, the brand introduces the SPRZ NY EAMES line which pay tribute to the contributions of Charles and Ray Eames.

Charles and Ray Eames are the husband and wife tandem that created the famous Eames lounge chair in 1956. The Uniqlo UT line dedicated to their works include a two-way stole for women and a shirt (for both men and women).

The UT line also teased a Marvel collection line though no release date was revealed. Other additions to the UT line include a shirt by Filipino designer Chan Cane alongside shirts featuring the popular Minions animated characters from the Despicable Me film franchise and shirts with designs from Disney’s Fantasia.

“With UT, it’s really an opportunity for us to collaborate with other personalities and other pop culture brands where Uniqlo becomes a bit more creative,” Ms. Barrera-Jalasco said.

NON-IRON SHIRT
Also notable in the Uniqlo Philippines Spring/Summer 2018 collection is the introduction of the Uniqlo Men’s Super Non-Iron Shirt made with “special stitching and processing to stay almost wrinkle-free, even after washing,” according to a company press release.

For women, the company released the Smart Ankle Pants said to combine an elegant look with a relaxed, comfortable feel by virtue of the elastic waist and a central crease to add a dressy touch.

“We’re very excited about [the Super Non-Iron Shirt] and we hope there will be a positive response from our customers. Right now, it’s only for men but if the reception is good, who knows, we might also come out with a women’s line,” Ms. Barrera-Jalasco said.

The launch also introduced additions to the brand’s AIRism line of innerwear, known for a material that wicks away sweat and keeps the user cool even during hot weather. This time, the lineup includes three types: mesh, jersey and seamless.

“We believe this product is one of key strategic products for the brand and we know that once Filipinos become more aware of what AIRism can do for them, then the response will become even more positive,” she said. — Zsarlene B. Chua

Naturalizer at 90: focusing on style and comfort

THESE days many women have turned from stilettos (at least in the daytime) to sneakers and flats even when they want to glam up their outfit. Nothing beats finding a good pair of shoes in which comfort and fashion go together.

Since its launch in 1927 as the first American fashion footwear brand for women, Naturalizer has offered shoes that married comfort with fashion. Dubbed as “the shoe with the beautiful fit,” it stays loyal to providing comfort as it adapts to modern designs.

During the launch of the 2018 spring/summer collection on Feb. 27, Naturalizer merchandising manager Pamela Abanilla told BusinessWorld that when the brand was launched in the Philippines in 1993, it was perceived as a “shoe for your mother or grandmother.” If mom and grandma wear any of the 18 new styles from the 2018 spring/summer collection, then they will be envied by their daughters for their stylish look. The collection features everything from sneakers to heels — slip on sneakers, flats, ankle-strap heels, and kitten-heeled shoes — which come in simple designs and monochromatic colors that would match any outfit. The new styles fit the busy lifestyles of the young and not-so-young.

Ms. Abanilla said that Naturalizer aims to cater to a “confident explorer mind-set” which she defined as “the epitome of the modern woman who works hard to nudge closer to what she envisions for her life.”

The brand has also updated its logo — a box spelling “Naturalizer.” Ms. Abanilla said that setting the brand’s name in a square is designed to “identify the logo as the brand.”

“We keep the heritage of the brand — comfort, style, and simplicity,” she said.

As it celebrates its 90th anniversary, Naturalizer is not offering a “Trade in, Give, and Save” promo until March 15 where a P2,000 gift certificate is given in exchange for a donation of an old but wearable pair of shoes. Donated pairs will go to the Revelation City Community Foundation.

Naturalizer Boutiques can be found in Glorietta 4, Shangri-La Plaza, SM Megamall, Ayala Mall The 30th, TriNoma, Alabang Town Center, Mall of Asia, Ayala Cebu, and Abreeza Davao. — Michelle Anne P. Soliman

SM, Boysen hold talk on the color for one’s moods

WHILE THE eye sees color, the heart sees emotion, and the rich varieties of both shape the human experience. SM Home, in collaboration with Boysen (the paint company) gave a talk earlier this month in its Makati City branch to show how color can change your space, and maybe, your life.

The colors used comes from Boysen’s 2018 color palettes, Be Bold and Be You. Be Bold reflects a range of colors from Marquee Moon, a soft yellow, to Space Cadet, a softer green, and Crown Prince, a rich but muted purple. Be You, meanwhile, likes it neutral, where even the muted blue, Blue for You, takes on a subtlety akin to an almost-invisible gray.

One of the speakers, interior designer Grace Moslares, studied the psychology of color, and came up with a space optimal for creating emotional health. Both philosophers and psychologists have studied how color affects the human experience, with even German thinking heavyweight Goethe dropping his hat in the ring. Most agree that colors can affect our mood, and we are sometimes drawn to a color based on the mood we are already feeling. Studies have also shown, for example, that men can be drawn to women based on the color they’re wearing — and it’s usually red. Ms. Moslares’s talk touched on this, saying that warm tones like orange can make us feel hungry, which is why a lot of fastfood joints incorporate the color in their branding.

She then talked about each part of the house, and what colors would be perfect for each. A resting area would benefit from blue, apparently. “You will be very calm, you will feel very collected. You cannot think so much because you would feel sleepy.”

Kitchens, meanwhile, should be splashed with orange. “Though if I’m dieting, I will paint it gray,” she said, perhaps to minimize the appetizing tints of food.

A living room used for entertaining would benefit from splashes of red, to create a feeling of congeniality. “All the bars are like that,” she said.

A study or work area should be green, she said, precisely because the color is calming, which means your mind would be relaxed enough to finish tasks.

Color psychology can also extend to clothing. For meetings and dates where you need to make an impression, wear subtle hues with a pop of red. “So the person who would see you would really remember you,” she said.

A surprise for those looking for some loving: purple. “There’s a certain effect of passion in violet. When you see violet, you could feel so [horny].”

Of course, color psychology aside, color preferences for home and the body always boil down to personal preference. “I wouldn’t gamble without asking about my client about their preferences before doing anything,” said Ms. Moslares. — Joseph L. Garcia

Traffic woes remain a damper to Mandaue’s economic growth

MANDAUE CITY, a part of the Metro Cebu area and considered a key growth zone in Cebu province, is projected to see a continued growth over the medium term with big projects coming up in the future. But while the city’s business outlook is bullish, an official from the Mandaue Chamber of Commerce and Industry (MCCI) cited traffic as one of its key challenges. “Mandaue will experience a strong and dynamic growth in the medium to long-term horizon,” MCCI Vice-President for External Affairs Steven Yu told The Freeman in an interview last week. Traffic, however, poses as a challenge to its growth. — The Freeman

See full story on https://goo.gl/SjxDNZ

Let traders import rice — FEF

THE Foundation for Economic Freedom (FEF) said the government needs to loosen its control over the rice trade by allowing private traders to import rice, and not just the National Food Authority (NFA).

In a statement released over the weekend, FEF, an association of prominent economists and former technocrats, said that NFA’s failure to inject rice into the market to stabilize prices gives private traders ample opportunity to exploit the situation.

FEF said imports by private traders will still be affordable to the poor, noting that then NFA is mandated to sell rice at a range of P27 to P32 per kilo while private traders would sell at a range of P36 to P41.

“If private traders can freely import rice, they can quickly respond more to the needs of the rice market. The price of rice in our rice-exporting neighbors is about half the domestic price of rice,” it read.

“There is no reason why rice prices should become unstable and rise since there is plentiful supply from our neighboring countries that can be easily tapped by our private traders.”

The NFA last month said that its rice inventories are running low, leaving it unable to inject supply into the market in respons to a crisis.

“The low level of NFA stocks makes the rice market vulnerable to price manipulation by rice traders. This happens if there is a monopoly on rice imports,” FEF said.

In May 2017, NFA Council Chairman Leoncio B. Evasco, Jr. said that the council will allow private rice traders to import during lean months to avoid shortages.

The NFA is mandated to maintain rice stocks good for 30 days between July and September, and 15 days at any given time.

Last year, the NFA had to allocate rice to Marawi after the five-month siege. In January, the NFA also directed more rice to Albay after the eruption of Mayon volcano.

However, FEF said that NFA did not request to replenish its stock within weeks of releasing inventory.

“[W]ithout adequate stocks, NFA cannot effectively bring down the price. Accordingly, the poor will have to pay more for the rice.”

While FEF said that the Philippines entered the year with a low stock ratio, NFA Administrator Jason Laureano Y. Aquino said in earlier reports that commercial firms and households still maintain abundant stocks. — Anna Gabriela A. Mogato

Rustan’s ActiveWear is dedicated to followers of a healthy lifestyle

WITH THE growing shift in its customers’ mind-set to living better and healthy lives, Rustan’s has decided to dedicate an area of its flagship store to those living that lifestyle.

Located at the ground level of the upmarket department store’s Makati branch, Rustan’s ActiveWear, which was formally launched on Thursday, March 1, celebrates good health and wellbeing through the products it sells and aims to inspire people to pick up the healthy habit while having fun and enjoying the journey.

“Our inspiration as a group has always been the customers. There has been a shift in mind-set to living better and healthy lives so this area is dedicated to that lifestyle,” said Dina A. Tantoco, marketing communications manager for Rustan Commercial Corp., in an interview with BusinessWorld during the launch as she spoke of the decision to open Rustan’s ActiveWear.

“So it’s not just clothes and apparel here but also shoes, accessories, and gadgets which one can use as they take that fitness journey. We wanted them to have a fun experience and have choices for a lot of sports instead of just one specific sport,” she added.

Rustan’s ActiveWear carries quality brands for running, yoga, Cross-Fit, outdoor activities, and gym work, among others, spread out in the store area.

Brands available at the store — a mix of local and international — are Mizuno, Asics, New Balance, adidas, Under Armour, Prana, Maaji, Atsui, Certified Calm, Oakley, S’well, Aladdin, Audio Technica, Skullcandy, Philips, Champion, Quicksilver, Roxy, Columbia, and The North Face

“We know customers do not have much time with traffic bad and all, and they just want to see everything they want in one place. So it makes sense to have a place like this,” said Ms. Tantoco.

“We have good mix of local and international brands which we made sure to be aligned with our brand DNA. Meaning it has to be of good quality and fashionable and stylish pieces. We have limited editions [items] here as well,” the Rustan official added.

SMORGASBORD
It is this “smorgasbord” quality that has fitness coach and celebrity trainer Arnold Aninion excited over Rustan’s ActiveWear.

“I think it’s great that Rustan’s also has a store like this that combines everything, not only clothes but other things you would need to make your fitness and wellness journey,” he told BusinessWorld.

“They have an interesting mix of products here, both for men and women, and I’m really excited for this. And for one who is not specializing in one sport or activity, it is a great place for it has a smorgasbord of products and brands that you check out and experience,” said Mr. Aninion.

Ms. Tantoco said for now, only the department store in Makati City will have a Rustan’s ActiveWear section, but they are not discounting the possibility of opening branches moving forward and adding more brands.

“We’ll see how things do but for now this is it. We’re excited because of the range of products that we have and we hope to draw a different clientele as well with this, maybe the young crowd,” Ms. Tantoco said.

For more information on Rustan’s ActiveWear, visit Rustans.com.ph. — Michael Angelo S. Murillo

BSP unlikely to introduce another TDF tenor

By Melissa Luz T. LopezSenior Reporter

THE CENTRAL BANK is unlikely to introduce a new tenor for its term deposit facility (TDF) anytime soon, a senior official said, with the focus now on slowly raising the weekly auction volumes.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said they are not considering a new maturity for the weekly term deposit auctions as of the moment.

“We don’t want to surprise the market. We added the 14-day tenor based on our consultation with our counterparties, and they indicated strong interest in an intermediate tenor such as 14 days,” Mr. Guinigundo told reporters on Friday.

“The seven and 28 days remained in contention in the sense that based on our survey with our counterparties, there are still many of them who have expressed interest in investing in the 28 days.”

Any excess cash they hold which have not been deployed for loans, foreign exchange and debt payments can be parked under the central bank window in order to make small gains, which in turn is expected to bring market rates closer to the 3% benchmark set by the BSP.

The BSP expects to use “auction-based” operations to have a better handle on market loan rates, after it introduced a one percentage point cut in the reserve requirement ratio imposed on universal and commercial banks. The cut, which took effect last Friday, will unlock some P90 billion in the system.

The central bank introduced the two-week tenor last Feb. 14 with a P20-billion offer, which was later on raised to P40 billion.

Mr. Guinigundo pointed out that introducing a new tenor would need a fresh round of consultations with banks to check whether there will be demand. There are limited options for a new maturity — possibly a 21-day term — as going beyond a month-long tenor could crowd out demand for the 91-day Treasury bills.

Mr. Guinigundo said they are carefully assessing money supply conditions as they time the introduction of even bigger TDF volumes, especially now that the weekly offerings stand as the main monetary tool to influence loan pricing.

“If we increase immediately the volume of TDF, that could also impinge on the ability of the banks to service the requirements of their clients especially for loans and for some of their clients who would wish to buy foreign exchange for their imports and investment purposes,” the BSP official said.

“It is a process. We cannot accelerate the process without first monitoring the developments as well as the temperament of our counter parties.”

This week, the central bank will be offering P110 billion under the TDF, broken down into P50 billion under a week-long term, P40 billion for a 14-day tenor, and P20 billion under a month-long maturity.

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