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URC earmarks over P8B for 2025 capex

URC.COM.PH

UNIVERSAL ROBINA Corp. (URC) is earmarking over P8 billion for its 2025 capital expenditures (capex) to sustain growth, the company’s president said.

“We expect to be steady in our capex investments. In the past few years, we’ve been spending capex somewhere between P8 billion to P10 billion, including some landbanking for future growth opportunities,” URC President Irwin C. Lee told reporters on the sidelines of the Business Manual CEO Awards 2025 in Taguig City late Monday.

Mr. Lee said URC is eyeing to record single-digit growth in top line and bottom line for this year, as the company is “cautiously optimistic” about its financials.

He added that URC is expected to see “good profit growth” as the company works to recover margins and deal with high prices of inputs due to inflation.

“We’re looking for about mid-to-high single-digit top line growth. That will be driven by the return to growth in the Philippines, but also a continuation of our very good growth internationally. We’ll continue to see good profit growth. We’re going to accept a profit growth that is a few points behind top line growth,” he said.

“A lot of us are sort of very cautiously optimistic. The past three years have been a period of high inflation and therefore high price increases, which have been passed on to the consumers. We’re beginning to see the impact of that over the last year and a half or so,” he added.

With this, Mr. Lee said that URC is focusing on resuming volume growth, led by bolstering the value of its products as well as investing in new infrastructure.

“We’re focusing on best-value interventions, giving more value to the consumers, whether that’s in the form of better prices or just better offerings to consumers,” he said.

“We’re doing a lot of expansions in our infrastructure and capacity. We’re opening up some new factories and some infrastructure developments in the Philippines as well as outside of the country. The combination of these efforts will hopefully lead us to better volume growth,” he added.

However, Mr. Lee said that URC remains affected by inflationary pressures, which resulted in higher prices for its products.

“There are still selected commodities and ingredients that still have high inflationary pressure. Some of those still need to be addressed, both by internal cost savings and with some very selective pricing moves,” he said.

“But seeing what has happened over the last two to three years, I think those will be a little bit more muted and more deliberate in how we execute those so that the priority continues to be top line growth,” he added.

Mr. Lee said the company is also seeing a boost from the elections.

“We generally would expect some degree of help from the elections. Historically, there’s always been a bump whenever there’s an election year,” he said.

“We’re very strong in ready-to-drink with C2. We have a good water business. We have some ready-to-drink chocolates. We have good ready-to-drink coffee. We’re also number one in snacks. We’re strong in biscuits and some confectionery,” he added.

For the first nine months, URC saw a 17.6% drop in its attributable net income to P8.02 billion while sales improved by 1% to P118.88 billion.

URC shares fell by 1.07% or 70 centavos to P64.80 apiece on Tuesday. — Revin Mikhael D. Ochave

Paris’ Louvre museum, in dire state, cries for help

PRESSE.LOUVRE.FR

PARIS — The Louvre, the world’s most-visited museum and home to Leonardo da Vinci’s Mona Lisa, has requested urgent help from the French government to restore and renovate its ageing exhibition halls and better protect its countless works of art.

In a letter to Culture Minister Rachida Dati, revealed by Paris daily Le Parisien and confirmed to Reuters by the Louvre, Louvre President Laurence des Cars warned that the centuries-old building is in a dire state, and pointed at problems with water leaks and “worrying temperature swings which endanger the conservation of works of art.”

Built in Paris in the late 12th century, the Louvre Palace for centuries was the official residence of the kings of France, until Louis XIV — weary of rebellious crowds in Paris — abandoned it for Versailles, after which it became a museum for the royal art collection in 1793.

Last year, the Louvre welcomed 8.7 million visitors, who all entered via the pyramid-shaped western entrance, designed by architect I.M. Pei, which itself has become problematic as its greenhouse effect makes the Louvre’s subterranean reception uncomfortably hot on summer days.

A visit to the Louvre, the museum’s head wrote, has become “a physical ordeal,” with artworks being hard to find due to inadequate signage, lack of space for visitors to take a break, and insufficient food and sanitary facilities.

Designed to receive four million visitors a year, the Louvre saw record attendance of 10.2 million visitors in 2018, but Des Cars — who was appointed in 2021 — has imposed a limit of 30,000 visitors per day in order to avoid overcrowding.

Des Cars’ letter did not mention financing, but French TV news channel BFM said renovation costs could amount to 500 million ($520 million), which would be a challenge for President Emmanuel Macron’s government which has struggled to gets its 2025 budget approved by parliament.

Le Parisien reported that talks are under way between Mr. Macron’s office, the culture ministry, and the Louvre. A source close to Macron’s office confirmed that “the president has followed this issue with attention for several months.”

The culture ministry did not immediately respond to a request for comment.

After his first election in 2017, Mr. Macron gave his victory speech in front of the Louvre, while the Tuileries gardens around the former palace also played a prominent role during the 2024 Paris Olympics.

Besides a top-to-bottom renovation, the museum is also considering building a new wing for the Mona Lisa, as well as a new entrance on the eastern end of the museum, to relieve congestion at the Pyramid entrance. — Reuters

The vast potential of maritime cooperation, from security to economic

PHILIPPINE STAR/ EDD GUMBAN

The potential for maritime cooperation is as vast as the ocean itself — from defense cooperation to economic cooperation. The Philippines and France, as two “Blue Nations,” share similarities and affinities in terms of features and range of maritime resources.

As Blue Nations, both countries face shared challenges thereby opening the doors for strategic collaboration. Key areas that may be explored include environment, biodiversity, blue economy, and maritime defense and security.

This was discussed during the second installment of Stratbase ADR’s Blue Talks series, “Exploring Maritime Cooperation: The Role of International Partnerships on Maritime Security.”

The first thing that comes to mind is the defense and protection of our seas as part of our territory. The challenges that the Philippines is currently facing in the West Philippine Sea highlight the importance of deterring the aggressive actions of countries bent on disrupting the rule of law and upsetting the rules-based international order.

And, indeed, H.E. Marie Fontanel, Ambassador of France to the Philippines, reiterated the many firsts in the Franco-Philippines relations in the maritime domain. These milestones include the Balikatan exercise, the La Pérouse exercise, and the upcoming visit of the French aircraft carrier Charles de Gaulle. These emphasize the shared commitment to regional stability, freedom of navigation, and respect for sovereignty, over and above key initiatives such as the blue talks series.

Apart from France, collaboration with other like-minded partners is essential for ensuring regional maritime security. During the forum Indonesian Ambassador Agus Widjojo underscored the importance of inclusiveness, collective commitment, and trust as key pillars of cooperation. His sentiments were echoed by Vietnamese Ambassador Lai Thai Binh, who emphasized that strong partnerships and a steadfast commitment to the rule of law are crucial in addressing today’s complex challenges.

Japanese Ambassador Endo Kazuya, EU Ambassador Massimo Santoro, and Australian Acting Ambassador Dr. Moya Collett all highlighted the need to uphold international law, particularly in the West Philippine Sea, where illegal, aggressive, and dangerous actions continue to pose significant threats.

For the Philippines, these strategic collaborations play a critical role in safeguarding maritime security. To strengthen its defense posture, Manila is actively pursuing various initiatives, including cross-training programs, bilateral patrols, and other cooperative engagements.

But maritime security transcends physically securing boundaries. It is also about ensuring the economic security of nations. This larger sphere includes the environment, biodiversity, and the blue economy. It is about the efficient functioning of maritime trade and shipping routes, which are vital to global trade and are an important aspect of the Philippine economy.

The French ambassador herself said: “while defense is central to maritime security, it is not the only aspect. For an archipelagic nation like the Philippines, maritime safety is equally critical. Ensuring the safe and efficient transport of people and goods is essential for economic prosperity, just as territorial and maritime sovereignty is crucial for national security.”

This sentiment was echoed by diplomatic representatives of Japan, the European Union, Vietnam, Indonesia, and Australia, all of whom were present in the forum.

Indeed, beyond defending our territorial integrity while upholding peace and being resilient amidst the danger posed by the aggressive actions of external actors, securing vital trade routes that enable global trade, modernizing ports, and ensuring a just management of maritime industries is critical to foster sustained economic growth.

As a maritime and archipelagic country, the maritime industry is a lifeline of the Philippines necessitating increased support for its comprehensive and holistic development.

For one, ensuring maritime safety is crucial for boosting the Philippine economy, as the country’s trade and inter-island connectivity rely heavily on maritime activities. Through strengthened partnerships and comprehensive safety protocols, the Philippines aims to protect its maritime interests while contributing to global trade and sustainability goals.

Secondly, the shipping industry is an important sector for the country. It is a key driver of economic activity through the facilitation of the movement of goods, services, and people. As such, it is important to build the industry, including the modernization of the network of ports in the country. Given the Philippines’ strategic location in the Indo-Pacific region, these are instrumental to economic activity by connecting our islands to both domestic and international markets.

Maritime cooperation knows no bounds. It is a critical area where the President’s “economic security is national security” dictum is clearly illustrated.

All these, taken together, enable us to ensure sovereignty, prosperity, and security, and to uphold the rules-based order. To achieve these, only collaboration will set in motion a broad range of initiatives to address the multifaceted challenges facing the global maritime domain.

 

Victor Andres “Dindo” C. Manhit is the president of the Stratbase ADR Institute.

GSIS gets $272-million payout from infrastructure fund investment

GSIS FACEBOOK PAGE

THE GOVERNMENT Service Insurance System (GSIS) has received a $272-million (about P15.8-billion) payout from a private equity fund following the sale of its stake in a data center operator.

“As of Dec. 30, 2024, the GSIS received a substantial payout of $272 million from the Macquarie Asia Infrastructure Fund 2 (MAIF2), following the successful sale of the fund’s stake in AirTrunk, a leading data center operator in the region,” the state-run pension fund said in a statement on Tuesday.

“With this latest cashflow into the GSIS, along with previous payouts from MAIF2, the pension fund has now recouped more than its initial investment in the fund managed by the Macquarie Asset Management (MAM).”

The GSIS said the windfall boosted its income and, in turn, its fund life, which will benefit its members. As of the first quarter of 2024, the GSIS’ fund life was up to 2058, while its net income in the same period rose by 21% year on year to P37 billion.

“We have a duty to invest prudently on behalf of our millions of hardworking government employees. Our infrastructure investments through MAM’s funds have delivered excellent results, enhancing retirement security while supporting critical infrastructure,” GSIS President and General Manager Jose Arnulfo A. Veloso said.

The GSIS partnered with MAM in 2012 through an investment in the Philippine Investment Alliance for Infrastructure. It invested in MAM’s regional infrastructure funds in 2017 and 2021 to diversify its portfolio.

Mr. Veloso said the state-run pension fund for government employees has seen “strong” returns from its infrastructure investments in the Philippines and in Asia.

“The GSIS maintains a prudent balance in its portfolio, with 70% allocated to low-risk assets for stability and a strategic portion in higher-yielding infrastructure investments to drive returns and support pension fund growth,” the fund added. “The GSIS remains confident its diversified strategy focused on long-term stability will continue to deliver sustainable returns, securing members’ financial well-being.” — A.M.C. Sy

Vivant completes divestment from Buskowitz Energy

FREEMAN FILE PHOTO

LISTED Vivant Corp. said on Tuesday that the unit of its energy-related holding company Vivant Energy Corp. (VEC) has completed the transaction to divest from solar power provider Buskowitz Energy, Inc. (BEI)

VEC’s wholly owned subsidiary Vivant Renewable Energy Corp. (VREC) has complied with the post-closing requirements following the completion of the transaction documents for the sale of its equity stake in BEI, Vivant said in a stock exchange disclosure.

VREC divested its 32.26% stake, equivalent to 560,000 Common B shares, in BEI.

Aurora Sustainable Energy Pte. Ltd., a Singapore-based private limited company, acquired outstanding Common B shares, through the assignment by BEI of its rights to purchase VREC’s shares under the shareholders’ agreement.

“The transaction is aligned with Vivant Energy initiatives to focus on its core competencies as it concentrates on its investment initiatives on its retail energy supply (RES) and Small Power Utilities Group (SPUG) businesses,” the company said.

BEI has business interests in solar development, engineering, procurement, and construction. It offers solar power purchase agreements, leases and solar loans for companies and individuals to help their switch to renewable energy solutions.

Meanwhile, Vivant has investments in various companies engaged in electric power generation and distribution and retail electricity business. It recently entered the water industry arm, “with a diversified portfolio in the areas of bulk water supply, wastewater treatment and water distribution.”

At the local bourse on Tuesday, shares in the company closed unchanged at P18.80 each. — Sheldeen Joy Talavera

Start-up visas may spur Philippine jobs

STOCK PHOTO | Image from Freepik

By Beatriz Marie D. Cruz, Reporter

START-UP VISAS for foreigners could help generate jobs and increase Philippines competitiveness, but the government should improve the business environment and boost workforce skills to maximize economic benefits, analysts said.

“As we have witnessed how other countries benefitted from granting start-up visas, we expect the same to open up the country to talented innovators,” Divina V. Ilas-Panganiban, a lawyer and partner at Quisumbing and Torres’s IP Data and Technology Practice Group, told BusinessWorld in an e-mailed reply to questions.

“This will lead to the entry of novel ideas, fresh strategies and diverse technologies into the country,” she added.

A start-up visa, which allows a foreigner to set up a business in a host country, is being offered by Canada, Ireland, New Zealand, Singapore and the Netherlands.

Under Republic Act No. 11337 or the Innovative Start-up Act, foreigners who own a start-up may apply for a special visa to operate in the Philippines. The visa is valid for five years and may be renewed for three years.

“What’s good about that is it allows start-ups from other countries to consider the Philippines and it allows the marketplace to become more mature,” according to Alewijn Aidan K. Ong, assistant general manager for investments at National Development Corp. (NDC) “Secondly, it allows the exchange of technology and know-how.”

NDC is working with the Bureau of Immigration in issuing start-up visas.

Similar to a standard visa, a start-up visa facilitates the transfer of skills, knowledge and capital to the country, said Shotaro Akehira, a Master’s candidate at the Hiroshima University in Japan.

“In theory, issuing start-up visas would help attract young and talented entrepreneurs to the country to jumpstart sectors that would otherwise not receive investments,” he said in an e-mail.

Start-ups are also more willing to take risks compared with a traditional business. Its eagerness to innovate allows the economy to explore untapped markets, Mr. Akehira said.

However, allowing more foreign start-ups to enter the country could force local workers to seek opportunities overseas, Ms. Panganiban said.

“If foreign start-ups will be allowed to enter and share the market with local entrepreneurs, there is a risk that Filipino workers will be displaced,” she said. “Some fear that this may lead to a situation where local workers are again constrained to leave the country and look for better opportunities abroad.”

The government should upskill the Filipino workforce by investing in education and training programs, Ms. Panganiban said.

George N. Manzano, who teaches trade at the University of Asia and the Pacific, said developing a start-up culture takes more than issuing special visas.

“There should be a good investment climate, a deep pool of Filipino human resources, perhaps even incentives, good supplier industries and logistics, and more,” he said in a Viber message.

Mr. Akehira said the Philippines lags behind its Southeast Asian neighbors in having an established start-up ecosystem.

“For issuing start-up visas to be economically successful, the Philippines must massively invest in and revamp existing structures to incentivize international talent to enter the country,” he said.

To attract more foreign start-ups, the government should also improve its digital infrastructure and the ease of doing business in the country, Ms. Panganiban said.

“If foreign start-ups find that there are stricter requirements for them here especially compared with other economies, they may be discouraged from pursuing their business in the country,” she added.

Los Angeles artists, collectors reel from wildfires

A PLANE makes a drop as smoke billows from the Palisades Fire at the Mandeville Canyon, in Los Angeles, California, US, Jan. 11, 2025. — REUTERS

AS the Los Angeles area begins the formidable task of rebuilding after the most destructive wildfires in its history, the city’s artists and art collectors are mourning what could amount to billions of dollars in irreplaceable art that went up in flames.

The wildfires have altogether destroyed more than 13,000 structures, with many among those located in the affluent Palisades neighborhood — home to many priceless art collections — and the town of Altadena, which was home to a flourishing artist community.

Some of those art collectors likely lost many of their acquisitions as the fires burned out of control for weeks, while local artists have watched as their studios and homes burned, destroying their work and jeopardizing their livelihoods.

“There’s part of me that’s numb or in shock,” said Brad Eberhard, an artist who ran Altadena’s Alto Beta gallery, which also housed his own studio. Both burned down in the Eaton Fire. “Every half hour I remember another thing gone.”

Alto Beta, a 51-sq-meter space in an Altadena shopping center, hosted exhibits focused on artists who had not had a showing in Los Angeles in the past three years.

Mr. Eberhard lost between 50 and 70 of his own sculptures as well as about two dozen pieces of art from his friends and colleagues.

When he returned to visit the gallery, “all I recognized was an aluminum door frame,” he said.

Just days before the gallery burned down, Alto Beta had opened a show called Quiver exhibiting paintings from Mary Anna Pomonis, a Los Angeles-based artist. Ms. Pomonis described the work in the show as female-centered paintings rooted in devotional imagery.

“It felt like it was an appropriately dramatic response to work that I felt dealt on that scale of an epic narrative,” she said.

Many in the Los Angeles area have heard the fates of their homes but have been unable to return to see what’s left, as tens of thousands of Angelenos remain under evacuation orders.

Kim McCarty, a watercolor painter and owner of the Michael’s Santa Monica restaurant with her husband, lost her home to the Palisades fire. Like many, she has not been able to return to assess the damage in person.

Through their restaurant, which opened in 1979, the McCartys became acquainted with local artists and housed many pieces in their Malibu home from friends such as Roger Herman, a German-born artist who teaches at the University of California, Los Angeles, and Pippa Garner, an American artist who died in Los Angeles in December.

“(I’m) sad to lose that all because it’s such a loving thing,” said Ms. McCarty, who added she was not able to salvage any of her own artwork before she was forced to evacuate.

Experts have estimated that the LA wildfires could be the most expensive disaster in US history. AccuWeather has estimated at least $250 billion in losses due to the fires, although that figure could still change.

It is too early to estimate much of the losses that are art-related, but there were perhaps “billions” of dollars worth of fine art in properties in affected areas, said Christopher Wise, vice-president at Risk Strategies, an insurance broker and risk management consultancy.

“If you take a look at the size of the areas that are under threat or have burned, the scale of it really is staggering,” he said.

Still, Mr. Wise cautioned that the amount of losses remains unclear, as many collectors have yet to return to their homes.

Despite the uncertainty created by the wildfires, the organizers of Frieze Los Angeles made the decision last week to go ahead with the international art fair, scheduled for late February.

Frieze, which also holds annual fairs in London, New York, and Seoul, has presented the Los Angeles edition since 2019, elevating the city’s status as an art capital. The fair attracts galleries and collectors from around the world, especially those from the US West Coast.

“Since the fair’s founding six years ago, Frieze has been proud to support and be part of this vibrant community,” said a Frieze spokesperson. “The challenges the city is currently facing only strengthen our commitment to work alongside the community to rebuild and recover together.”

Frieze Los Angeles, in conjunction with several smaller art fairs, aims to send a message to the local art community by going forward despite the fires, said Marc Selwyn, the owner of Marc Selwyn Fine Art in Los Angeles.

“I think it’s important that people know that LA is open for business and art is something that can be a boost for people in these kinds of times,” the gallery owner said.

The world-famous Getty Museum, which survived the fires, led several major art organizations in standing up a $12 million LA Arts Community Fire Relief Fund, which is set to provide emergency relief to artists and others who work in the arts.

If there is a silver lining to be found in the disaster it may lie in how the Los Angeles artistic community has pulled together to help one another, said Mr. Eberhard. He has already been able to find homes in other galleries for most of the shows that Alto Beta was set to exhibit this year.

“I didn’t know that the artist community was this caring. I really didn’t, because artists are notoriously, and accurately, independent, self-reliant, like little islands,” he said. — Reuters

DeepSeek shows Silicon Valley’s huge blind spot on AI

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LAST YEAR, the chief executive officer of a leading AI firm was asked at a private Silicon Valley dinner about how his company differentiated from others building “foundation models,” the systems underpinning chatbots like ChatGPT. Did he have a moat? Yes, he answered, according to another CEO who was there. No one else had raised the billions of dollars that he had. That was his moat.

This shortsighted approach to doing business, that huge sums of money alone can keep competition at bay, is why giants like Meta Platforms, Inc. are in panic mode about DeepSeek, a Chinese company that’s built a formidable AI model for roughly the salary of a single AI executive in the US. Its breakthroughs now pose a shift in the balance of power and a reckoning for tech giants, who are suddenly no longer the guaranteed winners of AI.

On Monday the panic had spread to Wall Street, as Nasdaq 100 futures fell by more than 3% and put tech stocks on track for a $1 trillion rout.

The reason is obvious. OpenAI recently raised the largest venture capital round in history ($6.6 billion), while Mark Zuckerberg has said Meta will spend up to $65 billion on AI projects this year. Tech giants have been spending heavily on AI, and now it looks like a giant waste.

DeepSeek’s latest R1 model, released on Jan. 20, was built with just $6 million in raw computing power and inferior AI chips, a fraction of the money and resources spent by firms like OpenAI and Alphabet, Inc.’s Google. It’s not only tied with ChatGPT in a closely watched ranking of AI model capabilities and can perform chain-of-thought reasoning, it’s a hit with the public too, having topped app stores in the US, UK, and Canada1. It’s open source and free for personal use, and also cheap for businesses2. Silicon Valley soothsayer Marc Andreessen has called it “AI’s Sputnik moment.”

Does this mean that all the billions poured into chips, talent and energy infrastructure in the US have been for nothing? Not exactly, but that investment is no longer enough on its own. DeepSeek has shown that the future winners of AI will need both raw computing power and the efficiency innovations that Chinese firms have been forced to develop given US chip curbs.

Monday’s grim market also points to major blind spots that both Wall Street and tech firms have had on AI. First, DeepSeek’s growing capabilities have been public for months; my Bloomberg Opinion colleague Catherine Thorbecke wrote about the company in June. But it’s also been clear for more than a year that companies like OpenAI, Anthropic, and Google had no moats around their foundation model businesses. Enterprises and consumers could swap one for the other with ease. That was already a risky state of play, one that a Google engineer warned about in an infamous memo almost two years ago. Even so, OpenAI has continued burning money with no obvious path to profit in sight.

Part of the problem was that Silicon Valley broligarchs focused far too much on making AI that topped the benchmark rankings in an ego-driven, my-model-is-bigger-than-yours-contest, and spent far less on turning those innovations into well-designed products that businesses and consumers could use. DeepSeek’s success should serve as a wake-up call for firms like OpenAI to differentiate by focusing on what their customers need. And that still leaves plenty of room for them to stay ahead of competitors in China, where talent and hunger for AI supremacy abounds.

There’s another reason for Silicon Valley to remain optimistic. Just a few months ago, the tech industry was worrying about a looming plateau for AI’s capabilities, as so-called scaling laws hit a brick wall. But DeepSeek has shown that doesn’t have to be the case, and that there are workarounds to those limits.

Most important is the shift that DeepSeek has sparked in the competitive landscape. In the two years since ChatGPT was launched, large tech firms have been the biggest financial beneficiaries of the generative AI boom. But making AI cheaper — and not just bigger or better — is far more impactful to the rest of the world, something that tech leaders in their cloistered bubbles have failed to appreciate. When small organizations can do big things with AI, that promises a healthier and more dynamic market.

The great irony is that OpenAI’s Sam Altman and other AI leaders can finally relate to the workers their AI systems are displacing. Now they must try and do more with less, or see themselves displaced too.

BLOOMBERG OPINION

1DeepSeek’s app ranked at No. 1 on Apple’s App Store, and No. 5 on the Google Play Store at the time of writing.

2Accessing DeepSeek R1’s application programming interface (API) costs just $0.55 per million input tokens, compared to OpenAI’s API, which costs $15.

BankCom looks to raise at least P5 billion via dual-tenor bond offering

BANKCOM.COM.PH

BANK of Commerce (BankCom) is looking to raise at least P5 billion from a dual-tranche offering of peso-denominated fixed-rate bonds.

BankCom on Tuesday began the public offer of two-year Series C bonds and 5.25-year Series D bonds with a minimum aggregate issue size of P5 billion and an oversubscription option, it said in a disclosure to the stock exchange. The offer period is set to run until noon on Jan. 30.

The bonds will comprise the third tranche of the bank’s P50-billion bond program.

“Proceeds from the issuance will be used for management of the bank’s balance sheet, diversification of funding sources, and general corporate purposes,” BankCom said.

The two-year Series C bonds carry an interest rate of 6.1942% per annum, while the 5.25-year Series D papers are priced at 6.3494%, both with quarterly interest payouts.

“Eligible individual investors that hold the Series D Bonds until maturity will enjoy a net fixed interest rate of 6.3494% per annum,” BankCom added.

The minimum investment amount is P100,000 and increments of P50,000 thereafter.

“The Series C Bonds and Series D Bonds are targeted to be issued and listed on the Philippine Dealing & Exchange Corp. on Feb. 19,” the bank said.

ING Bank N.V., Manila Branch, Philippine Commercial Capital, Inc., Security Bank Capital Investment Corp., and Standard Chartered Bank were appointed as joint lead arrangers and joint bookrunners for the issuance. They will also act as selling agents for the offer along with BankCom.

The bank last tapped the domestic debt market last year, raising P6.57 billion from one-and-a-half-year bonds issued in May. The papers were priced at 6.5635% per annum, payable quarterly.

Its net income was at P2.21 billion in the first nine months of 2024, up by 9.98% year on year.

BankCom’s shares closed at P6.80 apiece on Tuesday, down by 27 centavos or 3.82%. — A.M.C. Sy

Cebu Pacific expects surge in 2025 passenger volume

BW FILE PHOTO

CEBU PACIFIC, operated by Cebu Air, Inc., expects to surpass last year’s passenger volume, fueled by its route expansion plans and its aim to bolster its Clark hub, the budget carrier said.

“In terms of our total passenger growth numbers, we carried 24.5 million passengers last year. We expect to grow our passenger numbers by roughly in the mid-20%,” Cebu Pacific President and Chief Commercial Officer Alexander G. Lao said in a media briefing on Tuesday.

This year’s passenger growth forecast of nearly 30 million passengers is faster than last year’s growth of 17%, which increased to 24.5 million from 20.9 million passengers in 2023.

The company’s forecast for this year will be driven by its route launches, fleet expansion, and the continued strengthening of its hubs in the country, Mr. Lao said.

“When we talked about opening the Davao and Iloilo bases, about expanding Cebu and Clark, a lot of this work started in October, or the winter 2024 season. So, that growth has already begun. We planted the seeds as early as last year,” he added.

For this year, Cebu Pacific will further boost its Clark hub with the launch of more domestic flights from Clark International Airport starting March 30.

This is in line with a resolution issued by the Manila Slot Coordination Committee of the Department of Transportation (DoTr) to remove turboprop aircraft operations at Ninoy Aquino International Airport (NAIA).

With this, the budget carrier is positioning its Clark hub as a premier gateway to the Philippines’ top destinations, Mr. Lao said.

Starting March 30, Cebu Pacific will mount daily flights from Clark International Airport to El Nido and Coron (Busuanga).

Just last week, the budget airliner announced that it will relocate its turboprop aircraft operations from NAIA to Clark International Airport on March 30.

Affected flights include Manila-Masbate-Manila and Manila-Siargao-Manila, which are operated by its regional brand Cebgo. These flights will now be moved to Clark.

With the addition of these new flights to its network, Cebu Pacific will now operate 15 domestic and international destinations from Clark.

To date, Cebu Pacific operates in 37 domestic and 26 international destinations in Asia, Australia, and the Middle East.

Meanwhile, the company is expecting seven new aircraft deliveries in 2025, lower than the 17 new aircraft it received last year.

With this, Mr. Lao said its capital expenditure (capex) budget for this year may likely be lower than the P50-billion capex in 2024, which was mainly allocated for aircraft-related expenses.

For the third quarter, Cebu Air incurred an attributable net loss of P173.19 million, compared to an attributable net income of P1.28 billion in the same period last year, as higher expenses put pressure on the company’s profit for the period.

At the local bourse on Tuesday, shares in the company closed 0.18% lower to end at P27.80 apiece. — Ashley Erika O. Jose

Entrepreneur makes ‘Canada is not for sale’ caps in response to Trump’s threats; tens of thousands of orders placed

STOCK PHOTO | Image by chris robert from Unsplash

DONALD TRUMP’s verbal threats towards Canada are paying off for one entrepreneur, after the new US president’s belligerent approach gave him an idea.

Liam Mooney, founder of an Ottawa-based design firm, made a hat emblazoned with “Canada is Not for Sale” in response to Mr. Trump’s tariff threats and suggestions that Canada become the 51st US state.

The hats gained attention after Ontario Premier Douglas Ford wore one during a meeting with Prime Minister Justin Trudeau and other premiers in Ottawa last week to discuss Mr. Trump’s vow to impose tariffs on imports from Canada.

According to Mr. Mooney, tens of thousands of hats have been ordered online since then.

Mr. Mooney told Reuters he designed the hats as a creative rebuttal to President Trump’s rhetoric, aiming to cut through political discourse with a message of nationalism and unity.

“It’s an opportunity to bring people together from all of civil society, regardless of political persuasion,” he said.

Tariffs would cripple Canada’s economy and raise the prices of oil and other goods in the US.

Trump is threatening tariffs at a time of political turmoil in Canada, with Liberal leader Mr. Trudeau set to resign in March after nearly a decade in power and the opposition Conservatives leading in the elections ahead of a federal election later this year.

Mr. Mooney said he and his business partner designed the hats after seeing one of Mr. Ford’s recent interviews on Fox News. The host urged the premier to consider annexation, suggesting it would be a “privilege” for Canada to merge with the US.

Ford responded that Canada is not for sale.

Trump, speaking via video to the World Economic Forum in Davos, Switzerland on Thursday, said he demanded respect from Canada. He has previously addressed Trudeau as “Governor.”

“Our sovereignty is threatened when our dignity is disrespected,” Mr. Mooney said. “We have allies and we have friends all around the world who are ready to rise to the call and defend us and join in.” — Reuters

Comic book takes battle for the West Philippine Sea to children

THE Philippines launched a comic book on Friday in its fight against what it called distorted narratives about maritime rights in the West Philippine Sea, a disputed area in the South China Sea, a move which drew criticism from China.

The 40-page comic book titled The Stories of Teacher Jun follows Teacher Jun and his students as they learn about maritime zones, international laws, and the need to safeguard Philippine marine resources.

National Security Adviser Eduardo Año said the comic book complemented government efforts to expose China’s “aggression” in the South China Sea, serving as a tool to educate Filipinos about complex maritime issues and their sovereign rights under international law.

Philippine Coast Guard Chief Ronnie Gavan said he hoped the book would inspire young Filipinos “to protect what is rightfully ours.”

The Chinese Embassy in Manila criticized the initiative, describing it as “political manipulation.”

One of the six chapters of the comic book highlighted the significance of the landmark 2016 ruling by the Permanent Court of Arbitration in favor of the Philippines which invalidated China’s sweeping claim of sovereignty over most of the South China Sea.

China rejects the ruling and has doubled down on its efforts to assert its sovereignty claim with an armada of coast guard and fishing militia, hundreds of kilometers off its mainland.

“Chinese officials, along with state-sponsored media and individuals, continue to spread distorted and twisted narratives to malign our efforts and justify their unilateral claims,” Mr. Año said. — Reuters